Econ- Exam I- Chapter 3

• meets the conditions:
• 1.) many buyers and sellers
• 2.) all firms selling identical products
• 3.) no barriers to new firms entering the market

shows the relationship between price of a product and the quantity of the product demaded

amt of a G or S that a consumer is willing and able to purchase at a given price

shows the relationship between the price of a product and the quantity of the product demanded

demand by all the consumers of a given G or S

holding everything constant, when the price of a product falls the quantity demanded of the product will increase

change in quantity demanded of a G that results from a change in price

change in quantity demanded of a G that results from the effect of a change in the good's price on consumers' purchasing power