1.
Demand curve: downward sloping line that shows in graph form the quantities demanded at each possible price
2.
Equilibrium price: the price at which the amount producers are willing to supply is equal to the amount consumers are willing to buy
3.
If income decreases: Shifts left
4.
If inputs become cheaper: Shifts right
5.
If number of firm increases: Shifts right
6.
If population increases: Shifts right
7.
If preferences change: Shifts right
8.
If price of complement decreases: Shifts right
9.
If price of substitute decreases: Shifts left
10.
If taxes increase: Shifts left
11.
If technology improves production: Shifts right
12.
Incentives: Motive
13.
Inelastic goods: situation in which a product's price change has little impact on the quantity demanded by consumers
14.
Law of demand: economic rule stating that the quantity demanded and price move in opposite directions
15.
Law of supply: economic rule stating that price and quantity supplied move in the same direction
16.
Laws of diminishing returns: economic rule that says as more units of a factor of production are added to other factors of production, after some point total output continues to increase but at a diminishing rate
17.
Price elasticity: economic concept that deals with how much demand varies according to changes in price
18.
Shortage: situation in which the quantity demanded is greater than the quantity supplied at the current price
19.
Supply curve: upward sloping line that shows in graph form the quantities supplied at each possible price
20.
Surplus: situation in which quantity supplied is greater than quantity demanded at the current price