Chapter 20 & 21

  1. demand
    the desire, willingness, and ability to buy a good or service
  2. demand scheduale
    a table showing quantities demanded at different possible prices
  3. demand curve
    a downward-sloping line that graphically shows the quantities demanded at each possible price
  4. law of demand
    the concept that people are normally winlling to buy less of a product if the price is high and more of the product if the price is low
  5. market demand
    the total demand of all consumers fro a product or service
  6. utility
    the amount of satisfaction one gets from a good or service
  7. diminishing marginal utility
    decreasing satisfaction or usefulness as additional units of a product are acuired
  8. subsitute
    a competing product that consumers can use in place of another
  9. complement
    a product often used with another product
  10. demand elasticity
    the measure of responsiveness relating to change in quantity demanded to a change in price
  11. supply
    the amount of goods and services tha tproducers are able and willing to sell at various prices during a specified time period
  12. law of supply
    suppliers will normally offer more for sale at higher prices adn less at lower prices
  13. supply schedule
    a table showing quantities supplied at different possible prices
  14. supply curve
    upward-sloping line that graphically shows the quantities supplied at each possible price
  15. profit
    the money a business receives for its products or services over and above its costs
  16. market supply
    the total of the supply schedules of businesses that provide the same good or service
  17. productivity
    the degree to which resources are being used efficiently to produce goods and services
  18. technology
    the methods or processes used to make goods and services
  19. subsidy
    a government payment to an individual, business or group in exchange for certain actions
  20. supply elasticity
    responsiveness of quantity supplied to a change in price
  21. shortage
    situation in which quantity demanded is greater than quantity supplied
  22. surplus
    • situation in which quantity supplied is greater than quantity demanded
    • situation in which government spends less than it collects in revenues
  23. equilibrium price
    the price at which the amount porducers are willing to supply is equal to the amount consumers are willing to buy
Card Set
Chapter 20 & 21