Upgrade to remove ads
Ch 2 Demand and supply
Terms in this set (13)
Components of the model of D&S
Characteristics of various markets
Pure competition has many firms and buyers, monopolistic competition many firms with non interdependent pricing and quantity many buyers, oligopoly few firms w/ interdependent pricing and quantity, pure monopoly single seller.
a tabulation of the quantity customers are willing to buy at given price
Law of demand
The principle that an inverse relationship exists between the price of a good and the quantity of that good that buyers demand, other things being equal
Change in quantity demanded vs change in demand
change in quantity demanded is along the D line, change in demand is a movement of the D line
An upward sloping curve dipicting the positive relationship between price and quantity supplied.
change in quantity supplied vs change in supply
Change in quantity supplied is a shift in the supply curve caused by a change in some condition other than goods price,
A market state where the supply in the market is equal to the demand in the market. the equilibrium price is the price of a good or service when the supply of it is equal to the demand for it in the market
A sudden surprise event that temporarily increases or decreases demand for goods and services.
Sudden surprise event temporarily increasing or decreasing demand for goods and services.
A government-imposed price control or limit on how high a price is charged for a product.
A government or group imposed price control or limit on how low a price can be charged for a product. Must be higher than equilibrium price in order to be effective
minimum wage as an example of a price control
Legal minimum or maximum prices for specific goods or services as an attempt to manage the economy by direct intervention.
YOU MIGHT ALSO LIKE...
Principles of Macroeconomics
Micro Economics Chapter 4
Chapter 3 Macro
OTHER SETS BY THIS CREATOR
Ch 6 GDP
Econ Ch1 key terms
Com S Ch. 4 Key terms/Matching
Com S Ch. 2 Key terms/ Mult. Choice