Studied by 29 Peopledemand curve
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demand curve
a curve that shows the relationship between the price of a product and the quantity of the product demanded
Supply Curve
A curve that shows the relationship between the price of a product and the quantity of the product supplied.
Quantity Demanded
the amount of a good that buyers are willing and able to purchase
Quantity Supplied
the amount of a good that sellers are willing and able to sell
Change in Quantity Demanded
a movement along the demand curve that shows a change in the quantity of the product purchased in response to a change in price
Change in Quantity Supplied
a movement along the supply curve that occurs in response to a change in price
shortage
A situation in which quantity demanded is greater than quantity supplied
surplus
A situation in which quantity supplied is greater than quantity demanded
equilibrium price
the price at which the quantity demanded equals the quantity supplied
equilibrium quantity
the quantity supplied and the quantity demanded at the equilibrium price
input costs
the price of the resources needed to produce a good or service
change in demand
a shift of the demand curve
change in supply
a shift of the supply curve
normal goods (superior goods)
direct relationship with income. If income goes up, demand goes up. If income falls, demand falls.
inferior goods
Goods for which demand tends to fall when income rises and demand goes up when income falls.
Complements
two goods for which an increase in the price of one leads to a decrease in the demand for the other Ex. Hot dogs and Buns
Substitutes
two goods for which an increase in the price of one leads to an increase in the demand for the other Ex. Pepsi and Coke
demand schedule
a table that shows the relationship between the price of a good and the quantity demanded
supply schedule
a table that shows the relationship between the price of a good and the quantity supplied
Equilibrium
the price at which demand equals supply/where the demand and supply curve intersect or cross.