Term
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Definition
| the amount of a good or service that consumers are able and willing to buy at various possible prices during a specific time period |
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Term
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Definition
| the amount of a good or service that producers are willing and able to sell at various prices during a specified time period |
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Term
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Definition
| the process of freely exchanging goods and services between buyers and sellers |
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Term
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Definition
| a transaction in which a buyer and a seller excersize their economic freedom by working out their own terms of exchange |
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Term
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Definition
| economic rule stating that the quantity demanded and price move in opposite directions |
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Term
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Definition
| the amount of a good or service that a consumer is willing and able to purchase at a specific price |
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Term
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Definition
| economic rule stating that individuals cannot keep buying the same quantity of a product if its price rises while their income stays the same |
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Term
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Definition
| economic rule stating that if two items satisfy the same need and the price of one rises, people will buy the other |
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Term
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Definition
| the ability of a good or service to satisfy consumer wants |
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Term
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Definition
| an additional amount of satisfaction |
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Term
| law of diminishing marginal utility |
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Definition
| rule stating that the additional satisfaction a consumer gets from purchasing one more unit of a product will lessen with each additional unit purchased |
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Term
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Definition
| table showing quantities demanded at different possible prices |
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Term
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Definition
| downward-sloping line that shows in graph form the quantities demanded at each possible price |
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Term
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Definition
| a product often used with another product |
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Term
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Definition
| economic concept that deals with consumers' responsiveness to an increase or decrease in price of a product |
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Term
| price elasticity of demand |
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Definition
| economic concept that deals with how much demand varies according to changes in price |
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Term
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Definition
| situation in which the rise or fall in a product's price greatly affects the amount of people that are willing to buy |
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Term
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Definition
| situation in which the product's price change has little effect on the quantity demanded by consumers |
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Term
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Definition
| economic rule that states that price and quantity supplied move in the same direction |
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Term
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Definition
| the amount of a good or service that a producer is willing and able to supply at a specific price |
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Term
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Definition
| table showing quantities supplied at different possible prices |
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Term
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Definition
| upward sloping line that shows in graph form the quantities supplied at each possible price |
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Term
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Definition
| any use of land, labor, and capital that produces goods and services more efficiently |
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Term
| law of diminishing returns |
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Definition
| economic rule that says as more units of a factor of production (such as labor) are added to other factors of production (such as equipment) after some point total output continues to increase but at a diminishing rate |
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Term
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Definition
| the price at which the amount producers are willing to supply is equal to the amount consumers are willing to buy |
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Term
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Definition
| situation in which the quantity demanded is greater than the quantity supplied at the current price |
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Term
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Definition
| situation in which quantities supplied is greater than the quantity demanded at the current price |
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Term
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Definition
| the distribution of goods and services based on something other than price |
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Term
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Definition
| underground or illegal market in which goods are traded at prices above their legal maximum prices or in which illegal goods are sold |
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Term
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Definition
| a legal minimum price below which a good or service may not be sold |
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