Econ S +D Vocab
Card Set Information
Econ S +D Vocab
the desire, ability, and willingness to buy a product.
Is the area of economics that deals with the
behavior and decision-making by small units, such as individuals and firms.
A listing that shows the various quantities demanded for a particular product at all prices that might prevail in the market at a given time.
A graph showing the quantity demanded at each and every price that might prevail in the market.
Law of Demand
states that the quantity demanded of a good or service
varies inversely with its price.
Market Demand Curve
the demand curve that shows the quantities
demanded by everyone who is interested in purchasing the product.
the extra usefulness or satisfaction a person gets from
acquiring or using one more unit of a product.
Diminishing Marginal Utility
States that the extra satisfaction we get from
using additional quantities of the product begins to diminish.
Change in Quantity Demanded
a movement along the demand curve that shows a change in the quantity of the product purchased in response to a change in price.
the change in quantity demanded because of a change in price that alters a consumers’ real income.
is the change in quantity demanded because of the change in the relative price of the product.
Change in Demand
Consumers demand different amounts at every price, causing the demand curve to shift to the left or right.
Competing products that can be interchangeably used.
Product that increase the value of other products.
the amount of a product that would be offered for sale at all possible prices that could prevail in the market.
Law of Supply
The principle that suppliers will normally offer more for sale at higher prices and less at lower prices.
a listing of various quantities of a particular product supplied at all possible prices in the market.
a graph showing the various quantities supplied at each and ever price that might prevail in the market.
Market Supply Curve
the supply curve that shows the quantities offered at various prices by all firms that offer the product for sale in a given market.
The amount that producers bring to market at any given price.
Change in Quantity Supplied
the change in the amount offered for sale in response to a change in price.
Change in Supply
a situation where suppliers offer different amounts of products for sale at all possible prices in the market.
A government payment to an individual, business, or other group to encourage or protect a certain type of economic activity.
a measure of the way in which quantity supplied responds to a change in price.