ECN112 Chap 4
Terms
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- other things remaining the same, if the price of a good rises, the quantity demanded of that good decreases, and if the price of a good falls, the quantity demanded of that good increases
- law of demand
- the relationship between quantity demanded and the price of the good when all other influences on buying plans remain the same
- demand
- a list of the quantities demanded at each different price when all other influenes an buying plans remain the same
- demand schedule
- a graph of the relationship between the quantity demanded of a good and it's price when all other influences on buying plans remain the same
- demand curve
-
on a demand curve, as price falls then quantity demanded increases
on a graph this looks like: - downward slope
- the sum of the demands of all the buyers in a market
- market demand
- a good that can be consumed in place of another good
- substitute
- influences on buying plans that change demand
-
-price of related goods, substitutes and complements
-Income
-expectations
-# of buyers
-preferences - demand for a good and the price of its substitute move in
- the same direction
- demand for a good and the price of its compliments move in
- opposite directions
- a good for which the demand decreases when incomes increase
- inferior good
- expectations that change demand:
-
-expected future income
-expected price changes - the amount of any good, service, or resource that people are willing and able to sell during a specified period at a specified price
- quantity supplied
- other things remaining the same, if the price of a good rises, the quantity supplied of that good increases; and if the price of a good falls, the quantity supplied of that good decreases
- law of supply
- the relationship between the quantity supplied and the price of a good when all other influences on selling plans remain the same
- supply
- a list of the quantities supplied at each different price when all other influences on selling plans remain the same
- supply schedule
- a graph of the relationship between the quantity supplied of a good and it's price when all other influences on the selling plans remain the same
- supply curve
-
law of supply is illustrated on a supply curve when the price of a good rises, quantitysupplied increases
The graph shows this as - upward slope
- the sum of the supplies of all the sellers in a market
- market supply
- a change in the quantity of a good that suppliers plan to sell that results from a change in the price of the good
- change in the quantity supplied
- a change in the quantity that suppliers plan to sell when any influence on the selling plans other than the price of the good changes
- change in supply
- main influences on selling plans that change supply
-
-price of related goods,substitutes in production, complements in production
-prices of resources/outputs
-expectations
-# of sellers
-productivity - a good that can be produced in place of another
- substitute in production
- a good that is produced along with another good
- complement in production
- supply of a good and the price of one of it's substitutes in production move in
- opposite directions
- supply of a good and the price of one of it's complements in production move in
- the same direction
- the expectations that can change supply
-
-expected price change of the good
-expected price change of resources - output per unit of input
- productivity
- main influence on productivity
- technology
- occurs when the quantity demanded equals the quantity sullied- when buyers and sellers plans are consistent
- market equilibrium
- the price at which the quantity demanded equals the quantity supplied
- equilibrium price
- the quantity bought and sold at the equilibrium price
- equilibrium quantity
- when there is a shortage the price rises; when there is a surplus, the price falls
- law of market forces
- excess supply
- surplus
- excess demand
- shortage
-
-equilibrium quantity increases
-equilibrium price is ambiguous - increase in supply and demand
-
-equilibrium quantity decreases
-equilibrium price is ambiguous - decrease in supply and demand
-
-equilibrium price rises
-equilibrium quantity is ambiguous - increase in demand, decrease in supply
-
-equilibrium price falls
-equilibrium quantity is ambiguous - decrease in demand, increase in supply