ch 3 macroeconomics

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Author:
gabo
ID:
104098
Filename:
ch 3 macroeconomics
Updated:
2011-09-25 00:39:35
Tags:
Market Demand Supply
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definitions
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  1. Law of Demand
    The principal that there is an inverse relationship between the price of a good and the quantity buyers are willing to purchase in a defined time period, ceteris paribus
  2. Demand
    A curve showing the varios quantities of a product consumers are willing to purchase at possible price during a specified period of time, ceteris paribus
  3. Change in quantity demanded
    A movement between points along a stationary demand curve, ceteris paribus
  4. Change in demand
    An increase or a decreased in the quantity demanded at each possible price. An increase/decrease in demand is a rightward/leftward shift in the entire demand curve.
  5. Law of Supply
    The principle that there is a direct relationship between the price of a good and the quantity sellers are willing to offer for sale in a defined time period, ceteris paribus
  6. Supply
    A curve showing the varios quantities of a product sellers are willing to produce and offer for sale in a defined time period, ceteris paribus
  7. Change in quantity supplied
    A movement between points along the curve, ceteris paribus
  8. Change in Supply
    An increase or a decreased in the quantity supplied at each possible price. An increase/decrease in supply is a rightward/leftward shift in the entire curve.
  9. Market
    Any arragment in which buyers and sellers interact to determine the price and quanity of goods and services exchanged
  10. Surplus
    A market condition existing at any price where the quantity supplied is > than the quantity demanded.
  11. Shortage
    A market condition exiting at any price where the quantity supplied is < than the quantity demanded
  12. Equilibrium
    A market condition that occurs at any price and quantity where the quantity demanded and the quantity supplied are equal.
  13. Price system
    A mechanisim that use the force of supply and demand to create an equilibrium through rising and falling prices.
  14. Normal goods
    Any good for which there is a direct relationship between changes in income and its demand curve.
  15. Inferior goods
    Any good for which there is an inverse relationship between changes in income and its demand curve

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