Study sets, textbooks, questions
Upgrade to remove ads
Econ Test lmao
Terms in this set (42)
the desire to own something and the ability to pay for it
law of demand
consumers buy more of a good when its price decreases and less when its price increases. demand is inversely related to price.
when consumers react to an increase in a good's price by consuming less of that good and more of other goods (alternatives)
change in consumption resulting from a change in real income; buying fewer without increasing your purchases for alternatives.
a table that lists the quantity of a good a person will buy at each different given prices
market demand schedule
a table that lists the quantity of a good all consumers in a market will buy at each different given prices; allows owners of businesses to predict the total sales of a product at several different prices. can be accomplished by surveying customers.
a graphic representation of a demand schedule
A graph of the quantity of supplied goods at different prices
Always rises from left to right
"with other conditions remaining the same;" nothing besides the price would change. when we drop this rule and allow other factors to change, the entire demand curve shifts.
*increase in demand: shift to right
diminishing marginal returns
Level of production in which marginal product of labor decreases as the number of workers increases.
cost that does not change no matter how much of a good is produced. ex: rent, machinery repairs, salaries of workers, etc.
costs that rise or fall depending on the quantity produced. ex: more materials
total fixed cost + total variable cost
the cost added by producing one additional unit of a product or service
the additional income from selling one more unit of a good; sometimes equal to the price
the cost of operating a facility, such as a factory or store
a government payment that supports a business or market.
a tax on the production or sale of a good
Increases production costs by adding an extra cost for each unit sold
Used by the government to discourage the sale of goods that are considered harmful: cigarettes, alcohol, high pollutant gasoline, etc.
a good that consumers demand more of when their income increases.
a good that consumers demand less of when their incomes increase
two goods that are bought and used together; ex. toothbrush & toothpaste
goods that are used in place of one another
the amount of goods available
the amount that a supplier is willing and able to supply at a specific price
a chart that lists how much of a good a supplier will offer at various prices
a factor that can change
market supply schedule
a chart that lists how much of a good all suppliers will offer at various prices
elasticity of supply
measure of the way suppliers respond to a change in price.
marginal product of labor
the change in output from hiring one additional unit of labor
increasing marginal returns
A level of production in which the marginal product of labor increases as the number of workers increases.
the point at which the demand for a product or service is equal to the supply of that product or service.
any price r quantity not at equilibrium; when quantity supplied is not equal to quantity demanded in a market
results in higher prices
results in lower prices
a maximum price that can legally be charged for a good or service
a minimum price for a good or service
a price ceiling placed on apartment rent
a minimum price that an employer can pay a worker for an hour of labor
when quantity supplied is more than quantity demanded.
a situation in which consumers want more of a good or service than producers are willing to make available at a particular price.
the financial and opportunity costs that consumers pay when searching for a good or service
government intervention in a market that affects the production of a good.
Sets with similar terms
Mrs. Zipperle - Economics - Topic 3 - Demand, Supp…
Economic Chapter 4,5,6
Economics, Topic 3: Demand, Supply, and Prices
Economics Chapter 3; Demand, Supply, and Prices
Other sets by this creator
AP LIT TEST QUOTES
Heart of Darkness Test
Other Quizlet sets
International Studies midterm
PNV 133 HW11
Portfolio Management (R39) An Overview