Microeconomics Chapter 3

23 terms by ericamoriarty 

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quantity demanded

the amount of a good or service that consumers wish to purchase during some time period

demand schedule

a table that shows the relationship between quantity demanded and the price of a commodity, other things being equal

demand curve

the graphical representation of the relationship between quantity demanded and the price of a commodity, other things being equal

demand

the entire relationship between the quantity of a commodity that buyers wish to purchase and the price of that commodity, other things being equal

substitutes

goods that can be used in place of another good to satisfy similar needs or desires

complements

goods that tend to be consumed together

change in demand

a change in the quantity demanded at each possible price of the commodity, represented by a shift in the whole demand curve

change in quantity demanded

a change in the specific quantity of the good demanded, represented by a change from one point on a demand curve to another point, either on the original demand curve or on the new one

quantity supplied

the amount of a commodity that producers wish to sell during some time period

supply schedule

a table showing the relationship between quantity supplied and the price of a commodity, other things being equal

supply curve

the graphical representation of the relationship between quantity supplied and the price of a commodity, other things being equal

supply

the entire relationship between the quantity of some commodity that producers wish to sell and the price of that commodity, other things being equal

change in supply

A change in the quantity supplied at each possible price of the commodity, represented by a shift in the whole supply curve

Change in quantity supplied

a change in the specific quantity supplied represented by a change from one point on a supply curve to another point, either on the original supply curve or on a new one

market

any situation in which buyers and sellers can negotiate the exchange of goods or services

excess demand

a situation in which, at the given price, quantity demanded exceeds quantity supplied

excess supply

a situation in which, at the given price, quantity supplied exceeds quantity demanded

equilibrium price

the price at which quantity demanded equals quantity demanded equals quantity supplied. Also called the market-clearing price

disequilibrium price

a price at which quantity demanded does not equal quantity supplied

disequilibrium

a situation in a market in which there is excess demand or excess supply

comparative statics

the derivation of predictions by analyzing the effect of a change in some exogenous variable on the equilibrium

absolute price

the amount of money that must be spent to acquire one unit of a commodity. Also called money price

relative price

the ratio of the money price of one commodity to the money price of another commodity; that is, a ratio of two absolute prices.

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