yayayay

market

a place where people come together to buy and sell goods or services

inelastic demand

exists when the percentage change in quantity demanded is less than the percentage change in price

demand

willingness and ability of buyers to purchase a good or service

complements

goods consumed jointly; the price of one good and the demand for the other good move in the opposite direction

elasticity of demand

the relationship between percentage change in quantity demanded and the percentage change in price

law of demand

states that as the price of a good increases, the quantity demand of the good decreases, and as the price of a good decreases, the quantity demanded of the good increases

normal good

a good for which demand rises as income rises and falls as income falls

elastic demand

exists when the percentage change in quantity demanded is greater than the percentage change in price

inferior good

good for which demand falls as income rises and rises as income falls

neutral good

good for which demand remains unchanged as income rises or falls

substitutes

price of one good and the demand for the other move in the same direction

unit elastic demand

exists when the percentage change in quantity demanded is the same as the percentage change in price

quantity demanded

number of units of a good purchased at a specific price

demand schedule

numerical chart showing the law of demand

demand curve

line that represents the law of demand on a graph

quota

a legal limit on the number of units of a foreign-produced good (or import) that can enter a country

elasticity of supply

relationship between the percentage change in quantity supplied and the percentage change in price

supply

willingness and ability of sellers to produce and offer to sell different quantities of a good at different prices during a specific time period

law of supply

states that as the price of a good increases, the quantity supplied of a good increases, and as the price of a good decreases, the quantity supplied of a good decreases

advancement in technology

ability to produce more output with a fixed amount of resources

supply curve

graph that shows the amount of a good sellers are willing and able to sell at various prices

elastic supply

exists when the percentage change in quantity supplied is greater than the percentage change in price

direct relationship

relationship between two factors in which the factors move in the same direction

technology

body of skills and knowledge concerning the use of resources in production

subsidy

financial payment made by government for certain actions

inelastic supply

when the percentage change in quantity supplied is less than the percentage change in price

supply schedule

numerical chart illustrating the law of supply

per-unit cost

average cost of a good

quantity supplied

number of units of a good produced and offered for sale at a specific price

the markets

what determines consumer prices

slope downward from left to right

the direction of demand curves

birthrate, immigration, higher price in the future

which events can increase the demand for a good

change in demand

what does a shift in the demand curve represent

individuals

who determines if a good is normal or inferior

goes up

what happens to total revenue when a price decreases and the good is elastic

the demand for the product will increase

what happens when the number of buyers increases in a market

a graph, in words, a schedule

ways in which the law of demand can be represented

shifts to the right

if the demand for a product increases, which way will it shift

buyers want to buy less

what does it mean when the demand curve shifts to the left

price of substitute, change in income, change in expectations of future prices

what events will change the demand for a product

the demand for one good move in the same direction as the price of the other good

what occurs when goods are substitutes

the demand will be inelastic

what happens when there are few or no substitutes for a good

complimentary goods

the demand for one good moves in the opposite direction as the price of the other good

price

what causes change in quantity demanded

movement along the curve

how is a change in quantity demanded represented on a demand curve

milk, electricity, water

examples of inelastic items

how much buyers respond to a change in price

what does elasticity of demand measure

law of supply

the quantity supplied of a good rises when the price of a good rises

price and quantity supplied at each price

what is included in a supply schedule

inelastic

supply becomes what... when the seller does not respond to change

weather, sellers, future price

various ways in which a supply curve can shift

a change in price will have no effect on the quantity supplied

what does a vertical supply curve indicate

the sum of all firms supply curve

what does a market supply curve show

it becomes vertical

what happens to a supply curve when additional units can't be produced

a change in price

what factors into the change of quantity supplied

how elasticity of supply is measured

looking at the relationship between how much the quantity supplied responds to change in the price of the good

supply is elastic

what does it mean when the numerator is larger then the denominator

vertical supply curve

which way will a supply curve go when there is inelastic supply

theater seats, stadium seats, concert tickets

examples of inelastic products

taxes, technology, resource prices, weather, subsidies, quota, sellers, future price

various factors that affect the supply curve