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Related Flashcards
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Cards In This Set
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Law of demand
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Quantity demanded and price move in opposite directions. as price goes up, demand goes down. as price goes down, demand goes up.
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Demand
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Refers to the desire, willingness, and ability to buy a good or service
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Demand schedule
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A table that lists the various quantities of a product or service that someone is willing to buy over a range of possible prices
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Utility
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Describes the pleasure, usefulness, or satisfaction a person gets from using a product
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Substitutes
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Competing products consumers can use one in place of the other
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Supply
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Refers to the various quantities of a good or service that producers are willing to sell at all possible market prices
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Law of supply
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The term for the principle that suppliers will normally offer more for sale at higher prices and less at lower prices. as price goes up, supply goes up. as price goes down, supply goes down.
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Unlike a demand curve, a supply curve normally slopes ____________
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Upward
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Productivity
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The degree to which resources are being used efficiently to produce goods and services
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Inelastic
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A product for which quantity changes very little when prices go up or down is said to be supply.
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Surplus
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When quantity supplied is greater than the quantity demand
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Shortage
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When the quantity demanded is greater than the quantity supplied
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Equilibrium price
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The point at which supply meets demand.
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Price ceiling
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A maximum price set for the costs of a good or service
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Price floor
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A minimum price set for goods and services. this is more common than a price ceiling. minimum wage is an example.
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