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 specified time period |
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Term
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Definition
| the amount of a good or service that producers are able and willing 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 exercise 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 staing 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 2 items satisfy the same need and the price of one rises, people will buy more of the other |
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Term
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Definition
| the ability of any 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 dealing with consumers' responsiveness to an increase or decrease in the 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 a given rise or fall in a product's price greatly affects the amount people are willing to buy |
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Term
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Definition
| situation in which a product's price change has little impact on the quantity demanded by consumers |
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Term
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Definition
| economic rule stating 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
| the use of science to develop new products and new methods for producing and distributing goods and services |
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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 are added to other factors of production, 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 quantity supplied is greater than quantity demanded at the current price |
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Term
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Definition
| a legal maximum price that may be chargeed for a particular good or service |
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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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