Term
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Definition
| A change in the quantity demanded of a good or service at every price; a shift of the demand curve to the left or right. |
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Term
| change in quantity demanded |
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Definition
| A movement from one point to another point–from one price-quantity combination to another–on a fixed demand schedule or demand curve. The cause of such a change is an increase or decrease in the price of the product under consideration. |
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Term
| change in quantity supplied |
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Definition
| A movement from one point to another on a fixed supply curve.The cause of such a movement is a change in the price of a specific product being considered. |
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Term
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Definition
| A change in the quantity supplied of a good or service at every price; a shift of the demand curve to the left or right. |
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Term
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Definition
| Products and services that are used together. When the price of one falls, the demand for the other increase (and conversely). |
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Term
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Definition
| A schedule showing the amounts of a good or service that buyers (or a buyer) wish to purchase at various prices during some time period. |
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Term
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Definition
| A curve illustrating demand. |
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Term
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Definition
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Term
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Definition
| Factors other than price that determine the quantities demanded of a good or service. |
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Term
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Definition
| Factors other than price that determine the quantities supplied of a good or service. |
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Term
| diminishing marginal utility |
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Definition
| The principle that as successive increments of a variable resource are added to a fixed resource, the marginal product of the variable resource will eventually decrease. |
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Term
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Definition
| The price in a competitive market at which the quantity demanded and the quantity supplied are equal, there is neither a shortage nor a surplus, and there is no tendency for price to rise or fall. |
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Term
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Definition
| (1) The quantity demanded and supplied at the equilibrium price in a competitive market; (2) the profit maximizing output of a firm. |
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Term
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Definition
| A change in the quantity demanded of a product that resutls from the change in real income (purchasing power) produced by a change in the product's price. |
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Term
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Definition
| A good or service whose consumption declines as income rises (and conversely), price remaining constant. |
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Term
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Definition
| The principle that, other things equal, an increase in a product's price will reduce the quantity of it demanded, and conversely for a decrease in price. |
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Term
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Definition
| The principle that, other things equal, an increase in the price of a product will increase the quantity of it supplied, and conversely for a price decrease. |
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Term
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Definition
| Any institution or mechanism that brings together buyers (demanders) and sellers (suppliers) of a particular good or service. |
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Term
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Definition
| A good or service whose consuption increases when income increases and falls when income decreases, price remaining constant. |
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Term
| rationing function of prices |
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Definition
| The ability of market forces in competitive markets to equalize quantity demanded and quantity supplied and to eliminate shortages and surpluses via changes in prices. |
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Term
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Definition
| The maount by which the quantity demanded of a product exceeds the quantity supplied at a particular (below-equilibrium) price. |
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Term
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Definition
| 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,; conversely, when the price of one product rises, the demand for the other product rises. |
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Term
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Definition
| (1) A change in the quantity demanded of a consumer good that results from a change in its relative expensiveness produced by a change in the product's price; (2) the effect of a change in the price of a resource on the quantity of the resource emplyed by a firm, assuming no change in its output. |
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Term
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Definition
| A schedule showing the amounts fo a good or service that sellers (or a seller) will offer at various prices during some period. |
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Term
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Definition
| A curve illustrrating supply. |
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Term
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Definition
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Term
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Definition
| The amount by which the quantity supplied of a product exceed the quantity demanded at a specific (above-equilibrium) price. |
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