Microeconomics Overview

These flashcards cover key concepts in microeconomics including definitions of critical terms related to demand and market functions.

Microeconomics

The study of how individuals and businesses make decisions regarding limited resources.

Law of Demand

When the price goes up, quantity demanded decreases; when the price goes down, quantity demanded increases.

Market

Any place where buyers and sellers meet to exchange goods and services.

Medium of Exchange

An accepted form of payment for goods and services.

Demand Schedule

A table listing the quantity demanded at every price.

Demand Curve

A graphical representation of the quantity demanded at every price.

Unit of Account

A standard numerical unit of measurement that provides a consistent measure of value.

Store of Value

The function of money that preserves its value over time.

Quantity Demanded

The amount that consumers can and will buy of a product at a specific price.

Market Demand

The amount of a good or service that consumers are willing and able to buy at all prices in a given period.