Ch.3

Cards

Change in quality demanded caused soley by a change in the price of that good
Law of demand inverse relationship between price and quantity demanded of a good or service
Demand schedules schedule showing specific quantity of a good or service that people are willing and able to buy at different prices; if price falls, demand increases
Demand curves curve that depicts relationship between price and quantity demanded; downward sloping means price and quantity are inversely related
Market demand sum all individual demands in a market
Supply schedule shows specific quantity of goods that suppliers are willing to provide at different prices
Market day supply market situation which quantity of a good supplied is fixed, regardless of price
Supply curve curve that depicts relationship between price and quantity supplied; remains unchanged
Excess supply different between quantity supplied and quantity demanded, with quantity supplied being greater
Excess demand quantity demanded is greater than quantity supplied
Equilibrium price quantity demanded equals quantity supplied
Shortrun time interval which suppliers are able to change quantity of some resources used to produce goods
Longrun time intervals suppliers are able to change quantity of all resources used to produce goods
Change in demand change in quantity demanded of a good caused by other factors that change in price; cause: changes in income, taste, expectations, etc.
Normal good good whose demand increase/decreases with peoples income
Substitute goods when price of one increases, demand for the other increases
Complementary goods when price of one increases, demand for the other decreases
Changes in supply change in quantity supplied of a good thats caused by factors other than a change in price; cause: change in technology, resources prices, prices of other goods, # of suppliers