macro ch 3 (Autosaved) good Flashcards
(25 cards)
represented by the entire supply curve to shift. When Supply increases, the entire supply curve shifts rightward. When Supply declines, the entire Supply curve shifts leftward. 6 general determinants: technology, input prices, # of sellers, prices of other goods in production, expected future prices, taxes, subsidies, and govt restrictions
change in supply
represented by a movement from one point to another point on the same demand curve, and it is determined by price variations. And, the determinant of quantity demanded is the own price of the good at the present time
change in quantity demanded
he price falls to equilibrium price when there is a ______ in the market
surplus
the price rises to equilibrium price when there is a_______
shortage
A ______ exists if Q-demanded is greater than Q-supplied.
shortage
A _____ exists if Q-supplied is greater than Q-demanded.
surplus
The quantity that corresponds to the equilibrium price is called
equilibrium quantity.
The price at which Quantity demanded equals Quantity supplied is
equilibrium Price or market-clearing Price.
The point at which supply curve crosses demand curve is the
market equilibrium point.
two good that satisfy similar needs or desires
substitutes
for a given time period the marginal utility or satisfaction gained by consuming equal successive units ofa good will decline as the amount consumed increases
law of diminishing marginal utility
the numerical tabulation of the quantity demanded of a good at different prices. A demand scehdule is the numerical representation of the law of demand
demand schedule
for a given time period the marginal utility or satisfaction gained by consuming equal successive units ofa good will decline as the amount consumed increases
law of diminishing marginal utility
the price of a good for example if the price of oranges is $1 this is its own price
own price
a good for which demand rises (falls) as income rises (falls)
normal good
a good for which demand falls(rises) as income rises (falls)
inferior good
a good for which dmenad does not change as income rises or falls
neutral good
any place people come together to trade
market
the graphical representation of the law of demand
demand curve
as the price of a good rises the quantity demanded of the good falls and as the price of a good falls, the quantity dmenadned of the good rises
law of demand
the numerical tabulation of the quantity demanded of a good at different prices. A demand schedule is the numerical representatiin of the law of demand
demand schedule
represented by the entire demand curve to shift. When demand increases, curve shifts right, when decrease shift left, has 5 determinants: preference or taste, income, # of buyers, prices of related goods, expected future prices,
change in demand
the willingness and ability of buyers to purchase different quantities of a good at different prices during a specific time period
demand
captures the behavior of sellers (producers, distributors, retailers, whole-sellers, businesses, companies, etc.) that want to maximize their economic profits.
supply
