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Definition
| The principle that there is an inverse relationship between the price of a good and the quantity buyers are willing to purchase in a defined time period, ceteris paribus. |
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| A curve or schedule showing the various quantities of product consumers are willing to purchase at possible prices during a specified period of time, ceteris paribus. |
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| Change in quantity demanded |
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Definition
| A movement between points along a stationary demand curve, ceteris paribus. |
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Definition
| An increase or a decrease in the quantity demanded at each possible price. An increase in demand is a rightward shift in the entire demand curve. A decrease in demand is a leftward shift in the entire demand curve. |
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Definition
| Any good for which there is a direct relationship between changes in income and its demand curve. |
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Definition
| Any good for which there is an inverse relationship between changes in income and its demand curve. |
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Definition
| A good that competes with another good for consumer purchases. As a result, there is a direct relationship between a price change for one good and the demand for its "competitor" good. |
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Term
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Definition
A good that is jointly consumed with another good.
As a result, that is an inverse relationship between a price change for one good and the demand for its "go together" good. |
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Term
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Definition
| The principle that there is a direct relationship between the price of a good and the quantity sellers are willing to offer for sale in a defined time period, ceteris paribus. |
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Term
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Definition
| A curve or schedule showing the various quantities of a product sellers are willing to produce and offer for sale at possible prices during a specified period of time, ceteris paribus. |
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Term
| Change in quantity supplied |
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Definition
| A movement between points along a stationary supply curve, ceteris paribus. |
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Term
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Definition
| An increase or a decrease in the quantity supplied at each possible price. An increase in supply is a rightward shift in the entire supply curve. A decrease in supply is a leftward shift in the entire supply curve. |
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Definition
| Any arrangement in which buyers and sellers interact to determine the price and quantity of goods and services exchanged. |
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Definition
| A market condition existing at any price where the quantity supplied is greater than the quantity demanded. |
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Definition
| A market condition existing at any price at where the quantity supplied is less that the quantity demanded. |
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Definition
| A market condition that occurs at any price and quantity at which the quantity demanded and the quantity supplied are equal. |
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Definition
| A mechanism that uses the forces of supply and demand to create and equilibrium through rising and falling prices. |
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Definition
| A legally establish maximum price a seller can charge. |
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Definition
| A legally established minimum price a seller can be paid. |
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Definition
A situation in which a market equlibrium results in too few or too many resources used in the production of a good or service.
This inefficiency may justify government intervention. |
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Definition
| A cost or benefit imposed on people other than the consumers and producers of a good or service. |
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Term
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Definition
A good or service two properties:
1. Users collectively consumer benefits
2. There is no way to bar people who do not pay from consuming the good or service. |
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