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Flashcards in Vocab 3 Deck (17):
1

Ability of any good or services to satisfy consumer wants

Utility's

2

Economic law stating that as the price of a good rises the quantity demanded falls

Law of demand

3

Economic rule stating that people can not keep buying the same amount of a good or service it's price rises while their income stays the same.

Real income effect.

4

One product often used with another product.

Complementary good

5

Line plotted on a graph that shows the quantities supplied of a good or service at each possible price.

Supply curve

6

Economic principle stating that if two items satisfy the same need and the price of one increases, people will buy the other.

Substitution effect

7

Economic law stating that as the price of a good rises the quantity supplied rises.

Law of supply

8

Occur when quantity demanded exceeds quantity supplied at the going price

Shortages

9

Price of a product or services at which the amount producers are willing to sell is equal to the amount consumers are willing to buy

Equilibrium price

10

Principle that is the basis market economy activity; a buyer and seller exercise their economic freedoms by working out their own terms of exchange.

Voluntary exchange.

11

Situation occurring when supply is greater than demand.

Surplus.

12

Line plotted on a graph showing the quantity demanded of a good or service at each possible price.

Demand curve

13

Situation in which the rise or fall in price of a product does not greatly affect the amount of the product people are willing to buy.

In elastic demand

14

Situation in which the rise or fall in price of a product greatly affects the amount of that product people are willing to buy.

Elastic demand

15

Economic concept that deals with how much demand varies according to changes in price

Elasticity

16

Interlocking directing

Situation occurring when the majority of members of the boards of directors of competing corporations are the same

17

Federal regulation and control over business of formerly heavily regulated industries

Reregulation