ch3

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Author:
christiemcmanaman
ID:
117513
Filename:
ch3
Updated:
2011-11-17 12:38:40
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economics
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ch3 key terms econ
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  1. change in demand
    A shift of the entire demand curve.
  2. change in quantity demanded
    A movement along the demand curve that occurs in response to a change in price.
  3. change in quantity supplied
    A movement along the supply curve that occurs in response to a change in price.
  4. change in supply
    A shift of the entire supply curve.
  5. Complements
    Two goods are complements in consumption if an increase in the price of one causes a leftward shift in the demand curve for the other.
  6. demand curveďż˝
    A curve or schedule showing the total quantity of a good of uniform quality that buyers want to buy at each price during a particular period of time provided that all other things are held constant.
  7. economic efficiency
    Condition that occurs when all goods and services are produced and consumed at their respective socially optimal levels.
  8. efficient quantit
    The quantity that results in the maximum possible economic surplus from producing and consuming the good.
  9. equilibrium
    A state that occurs when all of the forces that act on all the variables in a system are in balance, exactly offsetting each other so that none of the variables in the system has any tendency to change
  10. equilibrium price
    The price of a good at the intersection of the supply and demand curves for the good.
  11. equilibrium quantity
    The quantity of a good at the intersection of the supply and demand curves for the good.
  12. excess demand
    The difference between the quantity supplied and the quantity demanded when the price of a good lies below the equilibrium price; buyers are dissatisfied when there is excess demand.
  13. excess supply
    The difference between the quantity supplied and the quantity demanded when the price of a good exceeds the equilibrium price; some sellers are dissatisfied when there is excess supply.
  14. inferior good
    A good whose demand curve shifts leftward when the incomes of buyers increase.
  15. Inputs
    Goods or services used in the process of producing a different good or service.
  16. market
    The context in which potential buyers and sellers of a good or service can negotiate exchanges.
  17. market equilibrium
    Occurs when all buyers and sellers are satisfied with their respective quantities at the market price medium of exchange. an asset used in purchasing goods and services.
  18. normal good
    A good whose demand curve shifts rightward when the incomes of buyers increase.
  19. quantity demanded
    The total amount of a good of uniform quality purchased at a single, specific price by all buyers during a particular period of time.
  20. quantity supplied
    The total amount of a good of uniform quality that all sellers are willing to produce and sell at a single, specific price during a particular period of time.
  21. Shortage
    The difference between the quantity supplied and the quantity demanded when the price of a good exceeds the equilibrium price; some sellers are dissatisfied when there is excess supply.
  22. Substitutes
    Two goods are substitutes in consumption if an increase in the price of one causes a rightward shift in the demand curve for the other.
  23. supply curve
    A curve or schedule showing the total quantity of a good of uniform quality that all sellers want to sell at each price during a particular period of time provided that all other things are held constant.
  24. Surplus
    The difference between the quantity supplied and the quantity demanded when the price of a good exceeds the equilibrium price.
  25. Technology
    The stock of knowledge, useful in producing goods and services, that is available to a society.

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