Chapter 3 The Supply & Demand Model

Study about Chapter 3 The Supply & Demand Model with these quiz based flashcards. Attempt this set of flashcards which are simple and easy and learn about Chapter 3 The Supply & Demand Model with this.

20 cards   |   Total Attempts: 182
  

Cards In This Set

Front Back
Demand
A relationship between price and quantity demanded
Price
The amount of money or other goods that one must pay obtain a particular good
Quantity Demanded
The quantity of a god that people want to buy at a given price during a specific time period
Demand Schedule
A tabular presentation of demand showing the price and quantity demanded for a particular good, all else being equal
Law of Demand
The tendency for the quantity demanded of a good in a market to decline as its price rises
Demand Curve
A graph of demand showing the downward sloping relationship between price and quantity demanded
Normal Good
A good for which demand increases when income rises and decreases when income falls
Inferior Good
A good for which demand decreases when income rises and increases when income falls
Substitute
A good that has many of the same characteristics as, and can be used in place of, another good
Complement
A good that is usually consumed or used together with another good
Supply
A relationship between price and quantity supplied
Quantity Supplied
The quantity of a good that firms are willing to sell at a given price
Supply Schedule
Tabular presentation of supply showing the price and quantity supplied of a particular good, all else being equal
Law of Supply
The tendency for he quantity supplied of a good in a market to increase as its price rises
Supply Curve
A graph of supply showing the upward-sloping relationship between price and quantity supplied