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- Equilibrium quantity Surplus Shortage | a graphical representation of the relationship between quantity supplied and price for an individual producer. a model of how a competitive market works. a change in the quantity supplied of a good that results from a change in the price of that good. 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- a good for which a rise in income increases the demand for that good— 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. 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. an economic situation in which no individual would be better off doing something different. a change in the quantity demanded of a good that results from a change in the price of that good. a good for which a rise in income decreases the demand for the good. the quantity of a good or service bought and sold at the equilibrium (or market- pairs of goods for which a rise in the price of one good leads to a decrease in the demand for the other good. the actual amount of a good or service consumers are willing to buy at some specific price. a shift of the demand curve, which changes the quantity demanded at any given price. the general proposition that, other things equal, the price and quantity supplied of a good are positively related. a list or table showing how much of a good or service producers will supply at different prices. a shift of the supply curve, which changes the quantity supplied at any given price. a graphical representation of the demand schedule, showing the relationship between quantity demanded and price. 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. 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 good or service used to produce another good or service. 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. a list or table showing how much of a good or service consumers will want to buy at different prices. the actual amount of a good or service producers are willing to sell at some specific price. a graphical representation of the relationship between quantity demanded and price for an individual consumer. a graphical representation of the supply schedule, showing the relationship between quantity supplied and price. 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. |
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-
Equilibrium quantity
Surplus
Shortage