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Flashcards in Week 2 Deck (19):
1

The claim that, other things being equal, the quantity demanded of a good falls when the price of the good rises

Law of demand

2

A table that shows the relationship between the price of a good and the quantity demanded

Demand schedule

3

A graph of the relationship between the price of a good and the quantity demanded

Demand curve

4

A good for which, other things being equal, an increase in income leads to an increase in quantity demanded

Normal good

5

A good for which, other things being equal, an increase in income leads to a decrease in quantity demanded

Inferior good

6

Two goods for which a decrease in the price of one good leads to a decrease in the demand for the other good

Substitutes

7

Two goods for which a decrease in the price of one good leads to an increase in demand for the other good

Complements

8

A Latin phrase, translated as 'other things being equal' which assumes all variables other than the ones being studied are constant

Ceteris Paribus

9

The amount of a good that sellers are willing and able to sell

Quantity supplied

10

The claim that, other things being equal, the quantity supplied of a good rises when the price of the good rises

Law of supply

11

A table that shows the relationship between the price of a good and the quantity supplied

Supply schedule

12

A graph that shows the relationship between the price of a good and the quantity supplied

Supply curve

13

A situation in which supply and demand have been brought into balance

Equilibrium

14

The price that balances supply and demand

Equilibrium price

15

The quantity supplied and the quantity demanded when the price has adjusted to balance supply and demand

Equilibrium quantity

16

A situation in which quantity supplied is greater than quantity demanded

Surplus

17

A situation in which quantity demanded is greater than quantity supplied

Shortage

18

The claim that the price of any good adjusts to bring the supply and demand for that good into balance

Law of supply and demand

19

The amount of a good that buyers are willing and able to purchase

Quantity demanded