Flashcards
Unit 1 vocabulary Economics
Cards in this deck (23)
- 11. MarketThe place where consumers and producers comes together to make business flow
- 22. DemandThe wants by consumers
- 3Law of Demandstates that other factors being constant (cetris peribus), price and quantity demand of any good and service are inversely related to each other.
- 4SupplyObject made by the producer to sell
- 5Law of supplyfundamental principle of economic theory which states that, all else equal, an increase in price results in an increase in quantity supplied.
- 6Equilibrium PriceThe equal balance price between the producer and consumer for the product
- 7Price Ceilinggovernment controlled price on a product
- 8Price Floorgovernment- or group-imposed price control or limit on how low a price can be charged for a product
- 91. Price Elasticity of DemandThe degree to which the quantity demanded for a good changes in response to a change in price can be influenced by a number of factors.
- 10Elastic Demandshows the response of economic growth with the product given
- 11Cross elasticity of Demandmeasures the responsiveness of the demand for a good to a change in the price of another good
- 12Substitute Goods2 goods that can be used for the same person
- 13Complement Goods2 goods that go well with each other
- 14Income elasticity of Demandmeasures the responsiveness of the demand for a good to a change in the income of the people demanding the good, ceteris paribus
- 15Normal Goodsany good that which demand increase when income increases.
- 16Inferior Goodsa good that decreases when income increases.
- 17Price Elasticity of Supplymeasure used in economics to show the responsiveness, or elasticity, of the quantity supplied of a good or service to a change in its price
- 18Market Failurewhen the market of growth fails
- 19Positive externalitiesBenefit enjoyed by a third party in the PPC
- 20Negative Externalitieswhen ones does not benefit from the PPC
- 21Public goods.product that one individual can consume without reducing its availability to another individual
- 22Merit goodsthe government feels that people will under-consume
- 23Demeirt Goodsgood or service whose consumption is considered unhealthy, degrading, or otherwise socially undesirable
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- vocabulary terms used in unit one economics
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