Reviewer: Demand, Supply and Market Equilibrium
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6 terms
Terms | Definitions |
|---|---|
 Capital Market | Markets in securities such as bonds and shares. Governments and companies use them to raise longer-term capital from investors, although few of the millions of capital-market transactions every day involve the issuer of the security. |
| Complements/Complementary Goods | Defined in economics as a good that should be consumed with another good; its cross elasticity of demand is negative. This means that, if goods A and B were complements, more of good A being bought would result in more of good B also being bought. |
| Demand Curve | A graph showing the relationship between the price of a good and the amount of demand for it at different prices. |
| Demand Schedule | Tables that contain experimentally obtained information of buying habits at varied prices. From these data a demand curve is then estimated and graphed, usually with the amount of a good or service demanded graphed to the x axis (often named in equations as "Q") and the price at which the good or service would be purchased on the y axis (often named in equations as "P"). |
| Entrepreneur | The life and soul of the capitalist party. Somebody who has the idea and enterprise to mix together the other factors of production to produce something valuable. An entrepreneur must be willing to take a risk in pursuit of a profit. |
| Equilibrium | When supply and demand are in balance. At the equilibrium price, the quantity that buyers are willing to buy exactly matches the quantity that sellers are willing to sell. |
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