Chapter 4

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Author:
Ruth5151
ID:
12946
Filename:
Chapter 4
Updated:
2010-04-03 01:59:34
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Economics Markiw
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Description:
A.P. Economics textbook, Chapter 4 vocabulary
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  1. market
    a group of buyers and sellers of a particular good or service
  2. competitive market
    a market in which there are many buyers and many sellers so that each has a negligible impact on the market price
  3. quantity demanded
    the amount of a good that buyers are willing and able to purchase
  4. law of demand
    the claim that, all other things equal, the quantity demanded of a good falls when the price of the good rises
  5. demand schedule
    a table that shows the relationship between the price of a good and the quantity demanded
  6. demand curve
    a graph of the relationships between the price of a good and the quantity demanded
  7. normal good
    a good for which, all other things equal, an increase in income leads to an increase in demand
  8. inferior good
    a good for which, all other things equal, an increase in income leads to a decrease in demand
  9. substitutes
    two goods for which an increase in the price of one leads to an increase in demand for the other
  10. complements
    two goods for which an increase in the price of one leads to a decrease in demand for the other
  11. quantity supplied
    the amount of a good that sellers are willing and able to sell
  12. law of supply
    the claim that, all other things equal, the quantity supplied of a good rises when the price of the good rises
  13. supply schedule
    a table that shows the relationship between the price of a good and the quantity supplied
  14. supply curve
    a graph of the relationship between the price of a good and the quantity supplied
  15. equilibrium
    a situation in which the price has reached the level where quantity supplied equals quantity demanded
  16. equilibrium price
    the price that balances quantity supplied and quantity demanded
  17. equilibrium supply
    the quantity supplied and the quantity demanded at the equilibrium price
  18. shortage
    a situation in which the quantity demanded is greater than the quantity supplied
  19. law of supply and demand
    the claim that the price of any good adjusts to bring the quantity supplied and the quantity demanded for that good into balance

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