Lecture on Supply and Demand in Macroeconomics

These flashcards cover key concepts related to the supply and demand theories discussed in the lecture.

Supply Schedule

A chart that shows the relationship between the price of a good and the quantity supplied.

Demand Schedule

A chart that shows the relationship between the price of a good and the quantity demanded.

Equilibrium Price

The price at which the quantity supplied equals the quantity demanded.

Substitute Good

A good that can be used in place of another.

Complementary Good

A good that is consumed along with another good.

Surplus

A situation where quantity supplied exceeds quantity demanded at a given price.

Shortage

A situation where quantity demanded exceeds quantity supplied at a given price.

Market-clearing Equilibrium

A situation where the market price is set so that the quantity supplied equals the quantity demanded.

Change in Supply

A shift of the supply curve due to factors other than the good's own price.

Change in Quantity Supplied

A movement along the supply curve due to a change in the good's price.

Input Prices

The costs of the resources needed to produce goods.

Speculation

The act of buying and selling assets with the expectation of profiting from changes in their value.

Speculative Bubble

A market situation where prices are driven above their intrinsic value by investor optimism.

Price Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in its price.

Market Adjustment

The process by which the market reaches equilibrium after a disturbance.