Economics 3

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Author:
akoskey
ID:
41988
Filename:
Economics 3
Updated:
2010-10-13 17:55:36
Tags:
economics
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Description:
chapter 3
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  1. competitive market equilibrium
    a market equilibrium with many buyers and sellers
  2. market equilibrium
    a situation in which quantity demanded equals quantity supplied
  3. variables that shift market supply, changes in:
    • price of resource
    • technology of production
    • seling price of production substitute
    • number of firms
    • expected future prices
  4. law of supply
    increases in price causes increases in the quantity supplied and vice versa, ceteris paribus
  5. supply curve
    a curve tha shows the relationship between the price of a product and the quantiy of the product supplied
  6. supply schedule
    a table that shows the relationship between the price of a product and the quantity of the product supplied
  7. quantity supplied
    the amount of a good or service that a firm is willing ad able to supply at a given price
  8. variables that shift market demand, changes in:
    • income
    • price or desirability of related goods
    • tastes and preferences
    • populations and demographics
    • expected future prices
  9. income effect
    the change in the quantity demanded of a good that results from the effect of a change in the good's price on consumers' purchasing power
  10. substitution effect
    the change in the quantity demanded of a good that results from a change in price, making the good more or less expensive relative to other goods that are substitutes
  11. law of demand
    when the price of a product falls, the quantity demanded of the product will increase, and vice versa, ceteris paribus
  12. market demand
    the demand byall consumers of a given good
  13. demand curve
    curve that shows the relationship between the price of a product and the quantity of the product demanded
  14. quantity demanded
    amount of a good that a consumer is willing and able to purchase at a given price
  15. demand schedule
    a table showing the relationship between the price of the product and th quantity of the product demanded
  16. perfectly competitive market
    • 1. Many buyers and sellers
    • 2. homogenous product
    • 3. no barriers

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