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Definition
| a relation between the price of a good and the quantity that consumers are willing and able to buy per period, other things constant. |
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| the quality of a good that consumers are willing and able to buy per period relates inversely, or negatively, to the price, other things constant |
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| substitution effect of a price change |
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| when the price of a good falls, that good becomes cheaper compared to other goods so consumers tend to substitute that good for other goods. |
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| The number of dollars a person receives per period, such as $400 per week. |
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| income measured in terms of the goods and services it can buy; real income changes when the price changes. |
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| income effect of a price change |
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| a fall in the price of a good increases consumers' real income, making consumers more able to purchase goods; for a normal good; the quantity demand increases |
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Definition
| a curve showing the relation between the price of a good and the quantity consumers are willing and able to buy per period, other things constant. |
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| the amount of a good consumers are willing and able to buy per period on a demand curve |
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Definition
| a relation between the price of a good and the quantity purchased by an individual consumer per, other things constant |
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Definition
| the relation between the price of a good and the quantity purchased by all consumers in the market during a given period, other things constant; sum of the individual demands in the market |
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Definition
| a good, such as new clothes, for which demand increases, or shifts rightward, as consumer income rises. |
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Definition
| a good, such as used clothes, for which demand decreases, or shifts leftward, as consumer income rises. |
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Definition
| goods, such as Coke and Pepsi, that relate in such a way that an increase in the price of one shifts the demand for the other rightward. |
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Definition
| goods, such as milk and cookies, that relate in such a way that an increase in the price of one shifts the demand for the other leftward |
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Definition
| consumer preferences; likes and dislikes in consumption; assumed to remain constant along a given demand curve. |
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Term
| movement along a demand curve |
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Definition
| change in quantity demanded resulting from a change in the price of the good, other things constant |
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Term
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Definition
| movement of a demand curve right or left resulting from a change in one of the determinants of demand other than the price of the good |
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Term
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Definition
| a relation between the price of a good and the quantity that producers are willing and able to sell per period, other things constant |
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Definition
| the amount of a good that producers are willing and able to sell per period is usually directly related to its price, other things constant |
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Definition
| a curve showing the relation between price of a good and the quantity producers are willing and able to sell per period and other things constant |
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Term
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Definition
| a curve showing the relation between price of a good and the quantity producers are willing and able to sell per period other things constant |
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Definition
| the amount offered for sale per period at a particular price, as reflected by a point on a given supply curve |
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Term
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Definition
| the relation between the price of a good and the quantity and individual producer is willing and able to sell period, other things constant |
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Definition
| the relation between the price of a good and the quantity all producers are willing and able to sell per period, other things constant |
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Definition
| resources used to produce the good in question |
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Definition
| other goods that that use some or all of the same resources as the good in question |
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Term
| movement along a supply curve |
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Definition
| change in quantity supplied resulting from a change in price of the good, other things constant |
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Term
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Definition
| movement of a supply curve left or right resulting from a change in one of the determinants of supply other than the price of the good |
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Definition
| the cost of time and information required to carry out market exchange |
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Definition
| at a given price, the amount by which quantity supplied exceeds quantity demanded; a surplus usually forces the price down |
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Definition
| at a given price, the amount by which quantity demanded exceeds quantity supplied; a shortage usually forces the price up |
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Definition
| the condition that exists in a market when the plans of buyers match those of sellers, so quantity demanded equals quantity supplied and the market clears |
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Definition
| the condition that exists in a market when the plans of buyers do not match those of sellers; a temporary mismatch between quantity supplied and quantity demanded as the market seeks equilibrium |
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Definition
| a minimum legal price below which a product cannot be sold; to have an impact, a price floor must be set above the equilibrium price. |
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Definition
| a maximum legal price above which a product cannot be sold; to have an impact, a price ceiling must be set below the equilibrium price |
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