Review of Key Concepts from Lecture

Flashcards covering key economic concepts such as supply and demand, elasticity, and market structures.

Supply and Demand

Economic model that determines the price in a market.

Equilibrium Price

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

Elasticity

A measure of how much the quantity demanded or supplied of a good responds to changes in price.

Substitute Goods

Goods that can replace each other; as the price of one increases, the demand for the other increases.

Complementary Goods

Goods that are consumed together; as the price of one decreases, the demand for the other increases.

Marginal Utility

The additional satisfaction or benefit received from consuming one more unit of a good or service.

Opportunity Cost

The loss of potential gain from other alternatives when one alternative is chosen.

Market Structure

The organization of a market based mainly on the degree of competition among producers.

Perfect Competition

A market structure characterized by a complete absence of rivalry among the individual firms.

Monopoly

A market structure where a single seller controls the entire supply of a product or service.