- StudyBlue
- Ohio
- Ohio State University - All Campuses
- Economics
- Economics 200
- Mirazie
- Micro chapter 3
Micro chapter 3
Economics 200 with Mirazie at Ohio State University - All Campuses
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.
demand
a schedule showing the amounts of a good or service that buyers wish to purchase at various prices during some time period
law of demand
the principle that, other things equal, an increase in a products price will reduce the quantity of it demanded, and coversely for a decrease in price
diminishing marginal utility
the principle that as successive increments of variable resource are added to a fixed resource, the marginal product of the variable resource will eventually decrease
income effect
a change in the quantity demanded of a product that results from the change in real income (purchasing power) caused by a change in the products price
substitution effect
1. a change in the quantity demanded of a consumer good that results from a change in its relative expensiveness caused by a change in the products price
2. the effect of a change in the price of a resource on the quantity of the resource employed by a firm, assuming no change in its output
2. the effect of a change in the price of a resource on the quantity of the resource employed by a firm, assuming no change in its output
determinants of demand
factors other than price that determine the quantities demanded for a good or service
normal good
a good or service whose consumption increases when income increased and falls when income decreases, price remains constant
inferior good
a good or service whose consumption declines as income rises, prices held constant
substitute good
products or services that can be used in place of each other. when the price of one falls the demand for the other product falls, when price of one product rises demand for the other product rises
complementary good
products or services that are used together , when price for one falls the demand for the other increases
change in demand
a movement of the entire demand curve or schedule such that the quantity demanded changes at every particular price; caused by a change in one or more of the determinants of demand
change in quantity demanded
a change in the quantity demanded along a fixed demand curve as a result of a change in the products price
supply
a schedule showing the amounts of a good or service that sellers will offer at various prices during some period
law of supply
the principle that, other things equal, an increase in the price of a produce will increase the quantity supplied, can conversely for a price decrease
determinants of supply
factors other than price that determine the quantities supplied of a good or service
change in supply
a movement of an entire supply curve or schedule such that the quantity supplied changes at every particular price; caused by a change in one or more of the determinants of supply
change in quantity supplied
a change in the quantity supplied alone a fixed supply curve as a result of a change in the products price
equilibrium price
the price in a competitive market at which the quantity demanded and the quantity supplied are equal
equilibrium quantity
1. the quantity at which the intentions of buyers and sellers in a particular market match a particular price such that the quantity demanded and the quantity supplied are equal
2. the profit-maximizing output of a firm
2. the profit-maximizing output of a firm
surplus
the amount by which the quantity supplied of a product exceeds the quantity demanded at a specific price
shortage
the amouth by which the quantity demanded of a product exceeds the quantity supplied at a particular price
productive efficiency
the production of a good in the least costly way; occurs when the production takes place at the output at which average total cost is a minimum and marginal product per dollars worth of input is the same for all inputs
allocative efficiency
the apportionment of resource among firms and industries to obtain the production of the products most wanted by society; the output of each product at which its marginal cost and price or marginal benefit are equal, and at which the sum of consumer surplus and producer surplus is maximized
price ceiling
a legally established maximum price for a good or service
price floor
a legally determined minimum price above the 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