Flashcards in Vocab 3 Deck (17):
Ability of any good or services to satisfy consumer wants
Economic law stating that as the price of a good rises the quantity demanded falls
Law of demand
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.
One product often used with another product.
Line plotted on a graph that shows the quantities supplied of a good or service at each possible price.
Economic principle stating that if two items satisfy the same need and the price of one increases, people will buy the other.
Economic law stating that as the price of a good rises the quantity supplied rises.
Law of supply
Occur when quantity demanded exceeds quantity supplied at the going price
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
Principle that is the basis market economy activity; a buyer and seller exercise their economic freedoms by working out their own terms of exchange.
Situation occurring when supply is greater than demand.
Line plotted on a graph showing the quantity demanded of a good or service at each possible price.
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
Situation in which the rise or fall in price of a product greatly affects the amount of that product people are willing to buy.
Economic concept that deals with how much demand varies according to changes in price
Situation occurring when the majority of members of the boards of directors of competing corporations are the same