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31 Cards in this Set

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The forces created by buyers and sellers that establish the prices and quantities exchanged of goods and services
Products market
The forces created by buyers and sellers that establish the prices and quantities exchanged of resources such as land, labor services, and capital
Resources market
The price of a product or service and the amount consumers are willing and able to purchase are inversely related. If price rises, the quantity demand falls or if prices fall quantity demanded increases, all other things held constant; or the area below the demand curve
Law of Demand
The dollar price that sellers recieve from buyers; a price expressed in terms of money, not in terms of an amount of another good
Money Price
A good for which a positive relationship exists between changes in consumer income and changes in demand
Normal Good (Superior)
A good for which an inverse relationship exists between changes in consumer income and changes in demand.
Inferior Good
The total opportunity cost to an individual of obtaining a good; includes money price and all other costs, such as transportation costs or waiting costs
Full Price
The price ratio or "trade off" in consumption between one product (or service) or between one good and other goods taken as a whole
Relative Price
A graphical representation of the quantities of a product that people are willing and able to purchase at all possible prices.
Demand Curve
The amount of any good or service cosumers are willing and able to purchase al all various prices.
Quantity Demanded
Anything other than price, such as consumer income and preferences, that determines the amount of a product or service that consumers are willing and able to purchase.
Factors affecting demand
The latin phrase for "all other things being equal"
Ceteris paribus
A change in the amount of a good a consumer is wiling and able to purchase that is caused by a change in the price of the good or service
Change in quantity demanded
A shift to the entire demand curve to the right or left
Change in demand
A good for which an inverse relationship exists between changes in consumer income and changes in demand.
Inferior Good
Goods for which a positive relationship exists between changes in the price of one and changes in demand for the other.
Substitues
Goods for which an inverse relationship exists between changes in the price of one and changes in demand for the other.
Complements
The total amount consumers are willing and able to purchase of a product at all possible prices, obtained by summing the quantities demanded at each price over all buyers.
Market Demand
The price of a product or service and the amount that producers are willing and able to offer for sale are positively related. If price rises, then quantity supplied rises; if price decreases, then quantity decreases.
Law of Supply
The amount of any good or service that producers are willing and able to produce and sell at some specific price.
Quantity Supplied
A graphically representation of the quantities of a product or service that producers are willing and able to sell at all possible prices.
Supply Curve
A change in the amount of a good a producer is willing and able to produce and sell that is caused by a change in the price of the good or service
Change in quantity supplied
A shift of the entire supply curve to the right or left.
Change in supply
Anything other than price, such as technology or input costs, that determines the amount of a product or service that sellers are willing and able to offer for sale
Factors affecting supply
The total amount producers are willing and able to offer for sale of a product at all possible prices, obtained by summing the quantities supplied at each price over all products.
Market Supply
The interaction of buyers and sellers producing and buying goods and services. Prices tend toward equality in a market through the continuos exchange between suppliers and demanders.
Market
A market in which there are enough buyers and sellers that no single buyer or seller can influence price.
Perfect Market
In perfect markets, the market forces of supply and demand produce a single, equilibrium price for a good or service
Law of one price
The amount by which quantity supplied exceeds quantity demanded at a price above the quilibrium price
Surplus
The amount by which quantity demanded exceeds quantity supplied at a price below the equilibrium price.
Shortage
The price at which quantity demanded is equal to quantity supplied; other things being equal , there is no tendency for this price.
Equilibrium price.