Term
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Definition
| a function that shows the quantity demanded at different prices |
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Term
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Definition
| is the quantity that buyers are willing and able to buy at a particular price |
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Definition
| the consumers gain from exchange or the difference between the maximum price a consumer is willing to pay for a certian quantity and the market price |
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Term
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Definition
| measured by the are beneath the demand curve and above the price |
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Term
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Definition
-income
-population
-price of substitutes
-price of complements
-expectations
-tastes |
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Term
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Definition
a good for which demand increases when income increases
ex. cars, electronics |
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Term
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Definition
a good for which demand decreases when income increases
ex. cup of noodles |
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Term
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Definition
| a decreases in the price of one good leads to the to a decreases in the demand for the other good |
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Term
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Definition
| a decrease in the price of the good leads to an increase of in the demand of the other good |
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Definition
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Definition
| a function that shows the quantity supplied at different prices |
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Term
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Definition
| the amount of a good that sellers are willign and able to sell at a particular price |
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Definition
| the difference between the market price and the min price at which a producer would be willing to sell a particular quantity |
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Term
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Definition
| measured by the are above the supply curve and below the price |
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Term
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Definition
-technological innovations and changes in the price of inputs
-taxes and subsidies
-expectations
-entry or exit of producers
-changes in opportunity costs |
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Term
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Definition
| a situation in which the quantity supplied is greater than the quantity demanded |
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Term
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Definition
| a situation in which the quantity demanded is greater than the quantity supplied |
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Term
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Definition
| the price at which the quantity demanded is equal to the quantity supplied |
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Term
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Definition
| the price at which the quantity demanded is equal to the quantity supplied |
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Term
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Definition
| the price at which the quantity demanded is equal to the quantity supplied |
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Term
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Definition
| the price at which the quantity demanded is equal to the quantity supplied |
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Term
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Definition
| the quantity at which the quantity demanded is = to the quantity supplied |
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Term
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Definition
1. shortages
2. reduction in quality
3. wasteful lines and other search costs
4. lost gains from trade
5. misallocation of resources |
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Term
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Definition
| maximum price allowed by law |
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Definition
| the total of lost consumer and producer surplus when not all mutually profitable gains from trade are exploited (price ceilings/floors create this) |
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Term
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Definition
| minimum price allowed by law |
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Definition
1. surpluses
2. lost gains from trade (dwl)
3. wasteful increases in quality
4. misallocation of resources |
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Definition
| the value of the opportunities lost |
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