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| a relationship btw. price and the quantity demanded of a certain good or service. |
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the total number of units of a good or service purchased at a certain price |
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| the common relationship that a higher price leads to a lower quantity demanded of a certain good or service |
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| a table that shows a range of prices for a certain good or service and the quantity demanded at each price |
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| a line that shows the relationship btw. price and quantity demanded of a certain good or service on a graph, with quantity on the horizontal axis and the price on the vertical axis |
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| a relationship btw. price and the quantity supplied of a certain good or service |
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| the total number of units of a good or service sold at a certain price |
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| the common relationship that a higher price is associated with a greater quantity supplied at each price |
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Definition
| a table that shows a range of prices for a good or service and the quantity supplied at each price. |
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| a line that shows the relationship btw. price and quantity supplied on a graph, w/ quantity suppled on the horizontal axis and price on the vertical axis |
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| the price where quantity demanded is equal to quantity supplied |
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| the quantity at which quantity demanded and quantity supplied are equal at a certain price |
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| the combination of price and quanitity where there is no economic pressure from surpluses or shortages that would cause price or quantity to shift |
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| when at the existing price, quantity suppled exceeds the quantity demanded |
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| at the existing price, the quantity demanded exceeds the quantity supplied |
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| all other things being equal |
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| when a change in some economic factor related to demand causes a different quantity to be demanded at every price |
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| goods where the quantity demanded rises as income rises |
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| goods where the quantity demanded falls as income rises |
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| goods that can replace each other to some extent, so that greater consumption of one good can mean less of the other |
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| goods that are often used together, so that consumption of one good tends to increase consumption of the other |
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| when a change in some economic factor related to supply causes a quantity to be supplied at every price |
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| factors that increase demand |
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Definition
a)taste shift to greater popularity
b)population likely to buy rises
c)income rises(for a normal good)
d)price of substitutes rises
e)price of complements falls
f)future expectations encourage buying |
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| factors that decrease demand |
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Definition
a) taste shift to lesser popularity
b) population likely to buy drops
c) income drops(for a normal good)
d) price of substitutes falls
e) price of complements rises
f) future expectations discourage buying |
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| factors that increase supply |
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Definition
a)favorable natural conditions for productions
b)fall in input prices
c) improved technology
d) lower product taxes/less costly regulations |
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| factors that decrease supply |
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Definition
a) poor natural conditions for production
b) a rise in input prices
c) a decline in technology
d) higher product taxes/more costly regulations |
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Definition
| govt laws to regulate prices |
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| a law that prevents a price form rising above a certain level |
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| a law that prevent a price from falling below a certain level |
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| an illegal market that breaks govt rules on prices or sales |
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| the benefit consumers receive from buying a good or service, measured by what the individuals woul d have been willing to pay minus the amount that they actually paid |
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| the benefit producers receive from selling a good or service, measure by the price producer s actually received minus the price the producer would have been willing to accept |
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| the sum of a consumer surplus and producer surplus |
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| the loss in social surplus that occurs when a market produces an inefficient quantity |
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| a price floor that makes it illegal for an emplyer to pay employees less than a certain hourly rate |
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| laws that impose an upper limit on the interest rate that lenders can charge |
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| govt policies to reduce or block imports |
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| taxes imposed on imported products |
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| numerical limitations on the quantity of products that can be imported |
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| all the other ways a nation can draw up rules, regulations, inspections and paperwork to make it more costly or difficult to import products |
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| an argument to block imports for a short time, to give the infant industry time to mature before eventually it starts competing on equal terms in the global economy |
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| selling internationally traded goods below their cost of production |
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| laws that block imports sold below the cost of production and impose tariffs that would increase the price of these imports to reflect their cost of production |
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| when production locates in countries with the lowest environmental standards, putting pressure on all countries to reduce their environmental standards |
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