ECON Chapter 4 terms

• quanity demaned rises as price falls, other thigns constant.
• quantity demanded falls as price rises other thigns counstant

the grapic representation of the relationship between price and quanityt demanded

refers to a scheduel of quanitites of a good taht will be bought er unit of time at various prices, otehr thigns constant

refers to a specific amount that will be demanded per unit of time at a specific price other thigns coustant

the graphical representation of the effectof a change in price on the quanitty demanded

the graphical representation of teh effect of anything other then price of demand

• society's income
• the prices of other goods
• tastes
• expectations
• taxes on and subsides to consumers

the horizontal sum of all individual demand curves

• quantitiy supplied rises as price rises, other thigns constant
• quantity supplied falls as price falls, other thigns constant

the graphical representation of the relationship between price and quantity supplied

refers to a scheduel of quantities a seller is willing to sell per unit of time at various prices other thigns constant

refers to a specific amount that will be supplied at a specific price

the graphical representation of teh effect of a change in price on the quanity supplied

the graphical representation of the effects of a change in a factors other than price on supply

the horizontal sum of all individual supply curves

a concept in which opposing dynamic forces cancel each other out

the amount bought and sold at the equilibrium price

the price toward which the invisible hand drives the market

a surplus, quantity supplied is greater than quantitiy demanded

a shortage quantity demanded is greater than quantiy supplied

the false assumption that what is true for a part will also be true for the whole