# Econ Unit 2 Test Review pt. 1

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1. Demand
Desire, ability, and willingless to buy product
2. Microeconomics
Deals with behavior and decision making in SMALL UNITS (firms, individuals)
3. Demand Schedule
List that shows various quantities demanded of a particular product at all times
4. Demand Curve
Graph showing quantity demanded at each and every price
5. Law of Demand
states quantity demanded of a good/service varies inversely with its price
6. Market Demand Curve
Shows quantities demanded by everyone who is interested in purchasing product.
7. Marginal Utility
Extra usefulness or satisfaction a person gets from using one more unit of a product
8. Diminishing Marginal Utility
Extra satisfaction we get from using an additional quantities of a product begins to diminish
9. Change in quantity demanded
Movement alond demand curve that shows a chance in quantity of product purchased in response to change in price
10. Substitutes
Used in place of other products
11. Complements
Related good are complements. More use of other goods, equal more use of products
12. Change in Demand
People have changed their minds about the amount they would buy at every price. (Right to left on demand curve)
13. Demand elasticity
Extent to which a change in price causes a change in the quantity demanded
14. Elastic
Given change in price sauses larger change in quantity demanded
15. Elasticity
Measure of responsiveness that tells us how a dependant variable(quantity) responds to change in an independent variable(price)
16. Unit Elastic
Given change in price causes a proportional chance in quantity demanded
17. Quantity Supplied
Amount offered for sale at a given price
18. Inelastic
Given change in price causes a smaller change in quantity demanded
19. Subsidy
Government payment to an indivudual, business, or other group to encourage or protect a certain type of economic activity
20. Supply Elasticity
How change in quantity supplied responds to chance in price
21. Change in Supply
Change in quantity supplied. (Increase in supply = right) (Decrease in supply = left)
22. Long run
Period of production long enough for producers to adjust the quantities of all their resources including capital
23. Diminishing returns
Stage where output increases at diminishing rate as more unites of a variable input are added
24. Theory of production
Relationship between factors of production and output of goods and services
25. Short run
Period of production that allows producers to change only the amount of labor

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 Author: gerardcb ID: 111932 Filename: Econ Unit 2 Test Review pt. 1 Updated: 2011-10-25 04:38:13 Tags: econ Folders: Description: econ unit 2 pt. 1 Show Answers:

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