ECON 2313: CHAPTER 4 TERMS
26 Cards in this Set
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Quantity Demanded
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The amount of any good, service, or resource that people are willing and able to buy during a specified time period at a specific price.
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Law of Demand
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Other things remaining the same, if the price of a good rises, the quantity demanded of that good decreases; and if the price of a good falls, the quantity demanded of that good increases
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Demand
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The relationship between the quantity demanded and the price of a good when all other influences on buying plans remain the same.
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Demand Schedule
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A list of the quantities demanded at each different price when all the other influences on buying plans remain the same.
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Demand Curve
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A graph of the relationship between the quantity demanded of a good and its price when all other influences on buying plans remain the same.
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Market Demand
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The sum of the demands of all the buyers in the market.
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Change in Demand
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A change in the quantity that people plan to buy when any influence on buying plans other than the price of the good changes.
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Substitute
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A good that can be consumed in place of another.
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Complement
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A good that is consumed with another good.
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Normal Good
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A good for which demand increases when income increases and demand decreases when income decreases.
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Inferior Good
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a good for which demand decreases when income increases and demand increases when income decreases.
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Change in the Quantity Demanded
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A change in the quantity of a good that people plan to buy that results from a change in the price of the good with all other influences on buying plans remaining the same.
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Quantity Supplied
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The amount of any good,service, or resource that people are willing and able to sell during a specified period at a specified price.
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Supply
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The relationship between the quantity supplied and the price of a good when all other influences on selling plans remain the same.
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Supple Schedule
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A list of the quantities supplied at each different price when all the other influences on selling plans remain the same.
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Supply Curve
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A graph of the relationship between the quantity supplied of a good and its price when all other influences on selling plans remain the same.
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Market Supply
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The sum of the supplies of all the sellers in the market.
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Change in Supply
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A change in the quantity that suppliers plan to sell when any influence on selling plans other than the price of the good changes.
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Substitue in Production
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A good that can be produced in place of another good.
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Complement in Production
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A good that is produced along with another good.
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Change in the Quantity Supplied
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A change in the quantity of a good that suppliers plan to sell that results form a change in the price of the good.
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Market Equilibrium
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When the quantity demanded equals the quantity supplied-buyers' and sellers' plans are in balance.
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Equilibrium Price
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The price at which the quantity demanded equals the quantity supplied.
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Equilibrium Quantity
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The quantity bought and sold at the equilibrium price.
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Surplus or Excess Supply
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A situation in which the quantity supplied exceeds the quantity demanded.
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Shortage or Excess Demand
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A situation in which the quantity demanded exceeds the quantity supplied.
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ECON 2313: POWERPOINT DEFINITIONS