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Microeconomics Chapter 3

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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.