________- individual demand curves of all consumers in a market.
New cards
2
Government
________ can limit quantity by requiring licenses to produce certain products.
New cards
3
Competitive market
many buyers and sellers for the same good or service
New cards
4
Market equilibrium
includes equilibrium price and quantity
New cards
5
Demand Schedule
table that shows how much of a certain good consumers are willing to buy at different prices
New cards
6
Demand Curve
graphical representation of a demand schedule
New cards
7
Law of Demand
the higher price of a good or service leads to less quantity of that good or service, all other things being equal
New cards
8
Complements in consumption
two goods that are used together
New cards
9
The rise in the price of one good leads to a decrease in demand for the other good (example
Beef and Potatoes)
New cards
10
Individual Demand Curve
shows quantity demanded and price for a single customer
New cards
11
Market Demand Curve
combined quantity demanded of all consumers determined by the market price of a good
New cards
12
Horizontal sum
individual demand curves of all consumers in a market
New cards
13
Supply Schedule
table that shows how much of a good or service produced will affect prices
New cards
14
Examples of input prices for producing donuts
Ingredients, Oven, Labor, Utility, and Rent
New cards
15
Substitutes in production (Example
Coke and BodyArmor)
New cards
16
Complements in production (Example
Cow skin and beef)
New cards
17
Wasted Resources
a form of inefficiency where people expend money, effort, and time to cope with the shortcomings experienced by a price ceiling
New cards
18
Inefficiently low quality
sellers sell lower quality goods at a lower price
New cards
19
competitive market
a market in which there are many buyers and many sellers for the same good or service
New cards
20
demand curve
a graph of the relationship between the price of a good and the quantity demanded
New cards
21
demand schedule
a table that shows the relationship between the price of a good and the quantity demanded
New cards
22
quantity demanded
actual amount consumers are willing and able to buy at a certain price
New cards
23
demand
how much people want at every price point
New cards
24
law of demand
higher price of a good or service leads to less quantity of that good or service, all other things being equal
New cards
25
increase in demand
a rightward shift of the demand curve
New cards
26
decrease in demand
a leftward shift of the demand curve
New cards
27
TRIBE
acronym for properties that shift the demand curve
New cards
28
taste
how people feel about a product
New cards
29
related goods or services
includes substitutes and compliments in consumption
New cards
30
substitues in consumption
goods that can be used in place of another good to satisfy similar needs or desires; increase in price of this leads to an increase in demand for "THE" product
New cards
31
compliments in consumption
goods that tend to be consumed together; a rise in price of this product leads to a decrease in demand for "THE" product
New cards
32
income
includes normal and inferior goods
New cards
33
normal goods
goods that consumers demand more of when their incomes rise
New cards
34
inferior goods
a rise in income decreases the demand, mostly due to better, more expensive options
New cards
35
individual demand curve
illustrates the relationship between quantity demanded and price for an individual consumer
New cards
36
market demand curve
the demand curve that shows the quantities demanded by everyone who is interested in purchasing the product
New cards
37
horizontal sum
the individual demand curves of all consumers in that market
New cards
38
quantity supplied
amount producers are willing to produce and sell
New cards
39
supply
the amount of goods available
New cards
40
supply schedule
a table that shows the relationship between the price of a good and the quantity supplied
New cards
41
law of supply
the price and quantity supplied are directly related
New cards
42
increase in supply
a downward shift in supply curve
New cards
43
decrease in supply
an upward shift of the supply curve
New cards
44
IRENT
factors that shift the supply curve
New cards
45
input
any good or service that is used to produce another good or service
New cards
46
related goods or services
includes substitutes and compliments in production
New cards
47
substitutes in production
alternative products that producers COULD use their resources to make
New cards
48
compliments in production
goods that must be produced together
New cards
49
equilibrium
an economic condition where no individual would be better off with any alternative
New cards
50
equilibrium price
the price that balances quantity supplied and quantity demanded
New cards
51
equilibrium quantity
the quantity supplied and the quantity demanded at the equilibrium price
New cards
52
surplus
excess supply
New cards
53
shortage
excess demand
New cards
54
increase in demand
equilibrium price and quantity both rise
New cards
55
increase in supply
the equilibrium price decreases and the equilibrium quantity increases
New cards
56
decreases, increases
when supply _____ and demand _____, price rises and quantity is ambiguous
New cards
57
increases, decreases
when supply _____ and demand _____, price falls and quantity is ambiguous
New cards
58
increases, increases
when supply _____ and demand _____, quantity rises and price is ambiguous
New cards
59
decreases, decreases
when supply _____ and demand _____, quantity falls and price is ambiguous
New cards
60
consumer surplus
the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it
New cards
61
producer surplus
the amount a seller is paid for a good minus the seller's cost of providing it
Studied by 10 people
