Term
| Perfectly Competitive Market |
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Definition
| A market that meets the conditions of (1) many buyers and sellers, (2) all firms are selling identical products, and (3) no barriers to new firms entering the market. |
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| The amount of a good or service that a consumer is willing and able to purchase at a given price. |
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| A curve that shows the relationship between the price of a product and the quantity of the product demanded. |
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| The demand by all consumers of a given good or service. |
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| Law that states that when the price of a good falls, the demand for it will increase and when the price of a good rises, the demand will decrease. |
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| The change in the quantity demanded of a good that results from a change in price, making the good more or less expensive to other goods that are substitutes. |
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| The change in the quantity demanded of a good that results from the effect of a change in the good's price in consumers' purchasing power. |
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| A good for which the demand increases as income rises and decreases as income falls. |
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| A good for which the demand increases as income falls and decreases as income rises. |
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| Goods and services that can be used for the same purpose. |
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| Goods and services that are used together. |
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| A curve that shows the relationship between the price of a product and the quantity of the product supplied. |
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| The law that states that as price increases, the quantity supplied increases and that decreases in supply will cause a decrease in supply. |
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Definition
| A situation in which quantity demanded equals quantity supplied. |
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Term
| Competitive Market Equilibrium |
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Definition
| A market equilibrium with many buyers and many sellers. |
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Definition
| A situation in which the quantity supplied is greater than the quantity demanded. |
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Definition
| A situation in which the quantity demanded is greater than the quantity supplied. |
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