Econ ch 3

The different amounts of a product that a buyer would purchase at different prices in a defined time period when all nonprice factors are held constant.

A list of the amounts of a product that a buyer would purchase at different prices in a defined time period when all nonprice factors are held constant.

There is an inverse relationship between the price of a product and the quantity demanded.

A line on a graph that illustrates a demand schedule; slopes downward because of the inverse relationship between price and quantity demanded.

The different amounts of a product that a seller would offer for sale at different prices in a defined time period when all nonprice factors are held constant.

A list of the amounts of a product that a seller would offer for sale at different time period when all nonprice factors are held constant.

There is a direct relationship between the price of a product and the quantity supplied.

A line on a graph that illustrates a supply schedule; slopes upward because of the direct relationship between price and quantity supplied.

A place or situation in which the buyers and sellers of a product interact for the purpose of exchange.

The demand of all buyers and supply of all sellers in a market for a good or service; found by adding together all individual demand or supply schedules.

Occurs in a market when the quantity demanded is greater than the quantity supplied, or when the product's prices is below the equilibrium price.

Occurs in a market when the quantity demanded is less than the quantity supplied, or when the product's price is above the equilibrium price.

The price and quantity where demand equals supply; price and quantity toward which a free market automaticall moves.

Equillibrium price; price at which the quantity demanded equals the quantity supplied

A change in the amount of a product demanded or supplied that is caused by a change in its price; represented by a movement along a demand or supply curve from one price quantity point to another.

A change in the demand schedule and curve for a product caused by a change in a noonprice factor influencing the product's demand; the demand curve shifts to the right or the left.

Nonprice factors, such as income, taste, and expectations, that help to determine the demand for a product.

A change in a nonprice influence on demand causes more of a product to be demanded at each price; the demand curve shifts to the right.

A change in a nonprice influence on demand causes less of a product to be demanded at each price; the demand curve shifts to the left.

A change in the supply schedule and curve for a product caused by a change in a nonprice factor influencing the product's supply; the supply curve shifts to the right or the left.

Nonprice factors, such as the cost of production and the number of sellers in the market, that help to determine the supply of a product.

A change in a nonprice influence on supply cases more of a product to be supplied at each price; the supply curve shifts to the right.

A change in a nonprice influence on supply causes less of a product to be supplied at each price; the supply curve shifts to the left.

A government set maximum price that can be chanrged for a good or service; if the equilibrium price is above the price ceiling, a shortage will develop.

State laws setting maxium interest rates that can be charged for certain types of loans.

A government set minimum price that can be charged for a good or service; if the equilibrium price is below the price floor, a surplus will develop.

A measure of the strength of buyers' or sellers' responses to a price change.

A strong respone to a price change; occurs when the percentage change in the quantity demanded or supplied is greater than the percentage change in price.

A week response to a price change; occurs when the percentage change in the quantity demanded or supplied is less than the percentage change in price.