11938743
Description
Flashcards by Asayena Viengmany, updated more than 1 year ago
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Created by Asayena Viengmany
over 6 years ago
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| Question | Answer |
| Demand | relationship between price and quantity DEMANDED of a good or service |
| Quantity Demanded | total number of good or service CUSTOMERS are willing to PURCHASE |
| Demand Schedule (price and gallons of gas) | table that shows a range of prices for a certain good or service and quantity DEMANDED at each price (diff from law of demand b/c can go against it by goods and prices both going up) |
| Demand Curve (downward b/c of law of demand; inverse relationship) | price (y-axis) and quantity demanded of good or service (x-axis) |
| Q: Which refers to consumers buying less goods when prices go up? | Law of Demand |
| Law of Demand (up down) | higher price leads to lower quantity demanded of a good or service; vice versa |
| Supply | relationship between the price and the quantity SUPPLIED of a good or service |
| Quantity Supplied | total number of good or service that PRODUCERS are willing to SELL at a given price |
| Supply Schedule | table that shows a range of prices for a good or service and the quantity SUPPLIED at each price |
| Supply Curve | quantity supplied on x axis; price on y axis |
| Law of Supply (up up) | HIGHER price leads to GREATER quantity; LOWER price leads to LOWER quantity supplied |
| Equilibrium (demand meets supply) | balance quantity demanded = quantity supplied |
| Equilibrium Price | price where quantity demanded = quantity supplied "price is just right" 10 people selling and 10 people buying at that given price |
| Excess Supply (Surplus) | quantity supplied EXCEEDS quantity demanded ex: when gas price higher than equilibrium price so demand (buying) less gas |
| Excess Demand (Shortage) | quantity demanded EXCEEDS quantity supplied ex: SALE SALE SALE |
| Shift in Demand | when a change in some economic factor (OTHER THAN PRICE) causes different quantity to be demanded at every price |
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