Term
|
Definition
A period of time long enough that a firm can change all the factors of production, meaning that a firm can modify its existing production facility or build a new one.
|
|
|
Term
|
Definition
| The extra benefit resulting from a small increase in some activity |
|
|
Term
|
Definition
| The additional cost resulting from a small increase in comse activity |
|
|
Term
| Marginal Product of Labor |
|
Definition
| The change in output from one additional worker |
|
|
Term
|
Definition
| The face value of an amount of money |
|
|
Term
|
Definition
| What you sacrifice to get something |
|
|
Term
|
Definition
| The value of an amount of money in terms of what it can buy |
|
|
Term
|
Definition
| A period of time over which one or more factors of production is fixed; in most cases, a period of time over which a firm cannot modify an existing facility or build a new one |
|
|
Term
|
Definition
| A cost borne by someone other than the people directly involved in the transaction |
|
|
Term
|
Definition
| A benefit experienced by someone other than the people directly involved in the transaction |
|
|
Term
|
Definition
| The effect of a transaction on a third party |
|
|
Term
| Perfectly Competetive Market |
|
Definition
| A market with a very large number of firms, each of which produces the same standardized product in amounts so small that no individual firm can affect the market price |
|
|
Term
|
Definition
| A table of numbers that shows the relationship between price and quantity demanded by a consumer, cetaris paribus (everything else held fixed) |
|
|
Term
|
Definition
| A curve that shows the relationship between price and quantity demanded by an individual consumer, (Everything else held fixed) |
|
|
Term
|
Definition
| The amount of goods an individual consumer or consumers as a group are willing to buy |
|
|
Term
|
Definition
| The higher the price, the smaller the quantity demanded, (everything else held fixed) |
|
|
Term
| Change in Quantity Demanded |
|
Definition
| A change in the amount of a good demanded resulting from a change in the price of the good; representing graphically by movement along the demand curve |
|
|
Term
|
Definition
| The change in consumption resulting from a change in the price of one good relative to the price of another good |
|
|
Term
|
Definition
| The change in consumption resulting from a change in the consumer's real income. |
|
|
Term
|
Definition
| A curve showing the relationship between price and quantity demanded by all consumers together (everything else held fixed) |
|
|
Term
|
Definition
| A table of numbers that shows the relationship between price and quantity supplied, (everything else held fixed) |
|
|
Term
|
Definition
| The amount of goods an individual firm or firms as a group are willing to sell. |
|
|
Term
| Change in Quantity Supplied |
|
Definition
| A change in the quantity supplied resulting from a change in the price of the good; represented graphically by movement along the supply curve |
|
|
Term
|
Definition
| A curve showing the relationship between price and quantity supplied by all producers together (everything else held fixed) |
|
|
Term
|
Definition
| A situation in which the quantity of a product demanded equals the quantity supplied, so there is no pressure to change the price |
|
|
Term
|
Definition
| A situation in which, at the prevailing price, consumers are willing to buy more than producers are willing to sell. |
|
|
Term
|
Definition
| A situation in which, at the prevailing price, producers are willing to sell more than consumers are willing to buy |
|
|
Term
|
Definition
| A change in the amount of a good demanded resulting from a change in something other than the price of the good; represented graphically by a shift of the demand curve |
|
|
Term
|
Definition
| A good for which an increase in income increases demand |
|
|
Term
|
Definition
| Two goods that are related in such a way that increased in the price of one good increses the demand for the other good |
|
|
Term
|
Definition
| Two goods that are related in such a way that an increase in the price of one good decreases the demand for the other good. |
|
|
Term
|
Definition
| A good for which an increase in income decreases demand |
|
|
Term
|
Definition
| A change in the amount of a good supplied resulting from a change in something other than the price of the good; represented graphically by a shift of the supply curve |
|
|
Term
| Price Elasticity of Demand |
|
Definition
A measure of the responsiveness of the quantity demanded to changes
in price; computed by dividing the percentage change in quantity demanded by the percentage
change in price. |
|
|
Term
| Price Elasticity of Suppy |
|
Definition
A measure of the responsiveness of the quantity supplied to changes in
price; computed by dividing the percentage change in quantity supplied by the percentage change in
price. |
|
|
Term
|
Definition
| The price elasticity of demand is greater than one. |
|
|
Term
|
Definition
| The price elasticity of demand is less than one. |
|
|
Term
|
Definition
| The price elasticity demand equals one. |
|
|
Term
| perfectly inelastic demand |
|
Definition
| Price elasticity of demand equals zero. |
|
|
Term
|
Definition
| Price elasticity of demand is infinite. |
|
|
Term
| income elasticity of demand |
|
Definition
A measure of the responsiveness of the quantity demanded to changes
in consumer income; computed by dividing the percentage change in the quantity demanded by the
percentage change in income. |
|
|
Term
| Cross Elasticity of Demand |
|
Definition
A measure of the responsiveness of the quantity demanded to changes in
the price of a related good; computed by dividing the percentage change in the quantity demanded of
one good (X) by the percentage change in the price of another good (Y). |
|
|
Term
| perfectly inelastic supply |
|
Definition
| Price elasticity of supply equals zero. |
|
|
Term
|
Definition
| Price elasticity of supply is infinite. |
|
|
Term
|
Definition
A formula that shows the percentage change in equilibrium price resulting
from a change in demand or supply, given values for the price elasticity of supply and the price
elasticity of demand. |
|
|
Term
|
Definition
A method of computing a percentage change by dividing the change in the
variable by the average value of the variable, or the midpoint between the old value and the new one. |
|
|
Term
|
Definition
| The maximum amount a consumer is willing to pay for a product. |
|
|
Term
|
Definition
The difference between a consumer’s willingness to pay for a product and the price
that he or she pays for the product. |
|
|
Term
|
Definition
The minimum amount a producer is willing to accept as payment for a product;
equal to the marginal cost of production. |
|
|
Term
|
Definition
The difference between the price a producer receives for a product and the producer’s
willingness to accept for the product. |
|
|
Term
|
Definition
| The sum of consumer surplus and producer surplus |
|
|
Term
|
Definition
A situation in which a market fails to be efficient because of external benefits, external
costs, imperfect information, or imperfect competition. |
|
|
Term
|
Definition
| The decrease in the total surplus of the market. |
|
|
Term
| Deadweight Loss from taxation |
|
Definition
The difference between the total burden of a tax and the amount of
revenue collected by the government. |
|
|
Term
|
Definition
| another name for deadweight loss |
|
|
