Chapter 3 Terms
Economics 101 with Kelly at University of Wisconsin - Madison
About this deck
About StudyBlue
STUDYBLUE makes things that make you better at school.
Things like online flashcards with photos and audio.
Things like personalized quizzes and friendly reminders about when (and what) to study next.
Think of it as a digital backpack™: access to all of your study materials online and on your phone.
STUDYBLUE exists to make studying efficient and effective for every student, for free. Join us.
“I have been getting MUCH better grades on all my tests for school. Flash cards, notes, and quizzes are great on here. Thanks!”
Kathy
Kathy
Sign up (free) to study this.
competitive market
a market in which there are many buyers and sellers of the same good or service, none of whom can influence the price at which the good or service is sold
supply and demand model
a model of how a competitive market works
demand schedule
shows how much of a good or service consumers will want to buy at different prices
quantity demanded
the actual amount of a good or service consumers are willing to buy at some specific price
demand curve
a graphical representation of the demand schedule, shows relationship between quantity demanded and price
law of demand
a higher price for a good or service, other things equal, leads people to demand a smaller quantity of that good or service
shift of the demand curve
a change in the quantity demanded at any given price, represented by the change of the original demand curve to a new position, denoted by a new demand curve
movement along the demand curve
a change in the quantity demanded of a good that is the result of a change in that goods price
substitutes
two goods are substitutes if a rise in the price of one of the goods leads to an increase in the demand for the other good
complements
two goods are complements if a rise in the price of one good leads to a decrease in the demand for the other good
normal good
a rise in income increases the demand for a normal good
inferior good
a rise in income decreases the demand for an inferior good
individual demand curve
illustrates the relationship between quantity demanded and price for an individual consumer
quantity supplied
the actual amount of a good or service producers are willing to sell at some specific price
supply schedule
shows how much of a good or service producers will supply at different prices
supply curve
shows the relationship between quantity supplied and price
shift of the supply curve
a change in the quantity supplied of a good or service at any given price, represented by the change of the original supply curve to a new position, denoted by a new supply curve
movement along the supply curve
a change in the quantity supplied of a good that is the result of a change in that good's price
input
a good or service that is used to produce another good or service
individual supply curve
illustrates the relationship between quantity supplied and price for an individual producer
equilibrium price
the price that matches quantity supplied and quantity demanded
equilibrium quantity
the quantity bought and sold at the equilibrium price
market-clearing price
equilibrium price
surplus
the quantity of a good or service supplied exceeds the quantity demanded, occur when the price is above its equilibrium price
shortage
the quantity of a good or service demanded exceeds the quantity supplied, occur when the price is below its equilibrium price
About this deck
About StudyBlue
STUDYBLUE makes things that make you better at school.
Things like online flashcards with photos and audio.
Things like personalized quizzes and friendly reminders about when (and what) to study next.
Think of it as a digital backpack™: access to all of your study materials online and on your phone.
STUDYBLUE exists to make studying efficient and effective for every student, for free. Join us.
“I have been getting MUCH better grades on all my tests for school. Flash cards, notes, and quizzes are great on here. Thanks!”
Kathy
Kathy