ch3

A shift of the entire demand curve.

A movement along the demand curve that occurs in response to a change in price.

A movement along the supply curve that occurs in response to a change in price.

A shift of the entire supply curve.

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.

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.

Condition that occurs when all goods and services are produced and consumed at their respective socially optimal levels.

The quantity that results in the maximum possible economic surplus from producing and consuming the good.

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

The price of a good at the intersection of the supply and demand curves for the good.

The quantity of a good at the intersection of the supply and demand curves for the good.

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.

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.

A good whose demand curve shifts leftward when the incomes of buyers increase.

Goods or services used in the process of producing a different good or service.

The context in which potential buyers and sellers of a good or service can negotiate exchanges.

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.

A good whose demand curve shifts rightward when the incomes of buyers increase.

The total amount of a good of uniform quality purchased at a single, specific price by all buyers during a particular period of time.

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.

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.

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.

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.

The difference between the quantity supplied and the quantity demanded when the price of a good exceeds the equilibrium price.

The stock of knowledge, useful in producing goods and services, that is available to a society.