3.2 Shifts in Demand and Supply for Goods and Services

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9 Terms

1

ceteris paribus

other things being equal

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2

complements

goods that are often used together so that consumption of one good tends to enhance consumption of the other

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3

factors of production

the resources such as labor, materials, and machinery that are used to produce goods and services; also called inputs

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4

inferior good

a good in which the quantity demanded falls as income rises, and in which quantity demanded rises and income falls

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5

inputs

the resources such as labor, materials, and machinery that are used to produce goods and services; also called factors of production

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6

normal good

a good in which the quantity demanded rises as income rises, and in which quantity demanded falls as income falls

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7

shift in demand

when a change in some economic factor (other than price) causes a different quantity to be demanded at every price

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8

shift in supply

when a change in some economic factor (other than price) causes a different quantity to be supplied at every price

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9

substitute

a good that can replace another to some extent, so that greater consumption of one good can mean less of the other

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