Competitive market Supply and demand model Demand schedule Quantity demanded Demand curve Law of demand Change in demand Movement along the demand curve Substitutes Complements Normal good Inferior good Individual demand curve Quantity supplied Supply schedule Supply curve Law of supply Change in supply Movement along the supply curve Input Individual supply curve Equilibrium Equilibrium price Market-clearing price Equilibrium quantity Surplus Shortage Price controls Price ceiling Price floor Quantity control or quota License Inefficient allocation to consumers Wasted resources Inefficiently low quality Black markets Minimum wage Inefficient allocation of sales among sellers Inefficiently high quality Demand price Supply price Wedge Quota rent Deadweight loss Imports Exports Globalization Autarky Domestic demand curve Domestic supply curve World price Exporting industries Import-competing industries Free trade Trade protection Protection Tariff | a form of inefficiency in which sellers who would be willing to sell a good at the lowest price are not always those who actually manage to sell it; often the result of a price floor. a shift of the supply curve, which changes the quantity supplied at any given price.) a good for which a rise in income decreases the demand for the good. goods and services sold to other countries. the minimum price buyers are required to pay for a good or service; a form of price control. the earnings that accrue to the license-holder from ownership of the right to sell the good. industries that produce goods or services that are sold abroad. the insufficiency of a good or service that occurs when the quantity demanded exceeds the quantity supplied; shortages occur when the price is below the equilibrium price. a change in the quantity demanded of a good that results from a change in the price of that good. the actual amount of a good or service consumers are willing to buy at some specific price. trade that is unregulated by government tariffs or other artificial barriers; the levels of exports and imports occur naturally, as a result of supply and demand. policies that limit imports; also known simply as protection. a graphical representation of the demand schedule, showing the relationship between quantity demanded and price. a good or service used to produce another good or service. markets in which goods or services are bought and sold illegally, either because it is illegal to sell them at all or because the prices charged are legally prohibited by a price ceiling. industries that produce goods or services that are also imported. a graphical representation of the relationship between quantity supplied and price for an individual producer. the price of a given quantity at which consumers will demand that quantity. policies that limit imports; an alternative term for trade protection. the phenomenon of growing economic linkages among countries. goods and services purchased from other countries. a shift of the demand curve, which changes the quantity demanded at any given price. a change in the quantity supplied of a good that results from a change in the price of that good. losses associated with quantities of output that are greater than or less than the efficient level, as can result from market intervention such as taxes, or from externalities such as pollution. legal restrictions on how high or low a market price may go. pairs of goods for which a rise in the price of one good leads to a decrease in the demand for the other good. an upper limit, set by the government, on the quantity of some good that can be bought or sold; also referred to as a quota. a form of inefficiency in which sellers offer high-quality goods at a high price even though buyers would prefer a lower quality at a lower price; often the result of a price floor. a demand curve that shows how the quantity of a good demanded by domestic consumers depends on the price of that good. a list or table showing how much of a good or service consumers will want to buy at different prices. a situation in which a country does not trade with other countries. the price at which the market is in equilibrium, that is, the quantity of a good or service demanded equals the quantity of that good or service supplied; also referred to as the equilibrium price. the price at which a good can be bought or sold abroad. the price of a given quantity at which producers will supply that quantity. the price at which the market is in equilibrium, that is, the quantity of a good or service demanded equals the quantity of that good or service supplied; also referred to as the market-clearing price. the proposition that, other things equal, the price and quantity supplied of a good are positively related. a legal floor on the wage rate. The wage rate is the market price of labor. a good for which a rise in income increases the demand for that good—the “normal” case. a graphical representation of the relationship between quantity demanded and price for an individual consumer. a form of inefficiency in which sellers offer low-quality goods at a low price even though buyers would prefer a higher quality at a higher price; often a result of a price ceiling. the principle that a higher price for a good or service, other things equal, leads people to demand a smaller quantity of that good or service. a market in which there are many buyers and sellers of the same good or service, none of whom can influence the price at which the good or service is sold. the maximum price sellers are allowed to charge for a good or service; a form of price control. the right, conferred by the government or an owner, to supply a good or service. a graphical representation of the supply schedule, showing the relationship between quantity supplied and price. a list or table showing how much of a good or service producers will supply at different prices. an economic situation in which no individual would be better off doing something different. the quantity of a good or service bought and sold at the equilibrium (or market-clearing) price. the excess of a good or service that occurs when the quantity supplied exceeds the quantity demanded; surpluses occur when the price is above the equilibrium price. the difference between the demand price of the quantity transacted and the supply price of the quantity transacted for a good when the supply of the good is legally restricted. Often created by a quota or a tax. a tax levied on imports. a form of inefficiency in which people who want a good badly and are willing to pay a high price don’t get it, and those who care relatively little about the good and are only willing to pay a low price do get it; often a result of a price ceiling. a supply curve that shows how the quantity of a good supplied by domestic producers depends on the price of that good. a form of inefficiency in which people expend money, effort, and time to cope with the shortages caused by a price ceiling. the actual amount of a good or service producers are willing to sell at some specific price. a model of how a competitive market works. pairs of goods for which a rise in the price of one of the goods leads to an increase in the demand for the other good. |
Competitive market
Supply and demand model
Demand schedule
Quantity demanded
Demand curve
Law of demand
Change in demand
Movement along the demand curve
Substitutes
Complements
Normal good
Inferior good
Individual demand curve
Quantity supplied
Supply schedule
Supply curve
Law of supply
Change in supply
Movement along the supply curve
Input
Individual supply curve
Equilibrium
Equilibrium price
Market-clearing price
Equilibrium quantity
Surplus
Shortage
Price controls
Price ceiling
Price floor
Quantity control or quota
License
Inefficient allocation to consumers
Wasted resources
Inefficiently low quality
Black markets
Minimum wage
Inefficient allocation of sales among sellers
Inefficiently high quality
Demand price
Supply price
Wedge
Quota rent
Deadweight loss
Imports
Exports
Globalization
Autarky
Domestic demand curve
Domestic supply curve
World price
Exporting industries
Import-competing industries
Free trade
Trade protection
Protection
Tariff