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Related Flashcards
Cards In This Set
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A schedule of curve that shows the various amounts of a product that consumers will buy at each of a series of possible prices during a specific period
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Demand
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The principle that, other things equal, as price falls, the quantity demanded rises, and as price rises, the quantity demanded falls
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Law of demand
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A curve illustrating the inverse relationship between the price of a product and the quantity demanded, other things equal
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Demand curve
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Factors other than price that locate the position of a demand curve
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Determinants of demand
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A good (or service) whose consumption rises when income increases and falls when income decreases
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Normal good
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A good (or service) whose consumption declines as income rises and rises as income decreases
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Inferior good
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A good (or service) that can be used in place of some other good (or service)
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Substitute good
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A good (or service) that is used in conjunction with some other good (or service)
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Complementary good
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A change in the quantity demanded of a product at every price
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Change in demand
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A movement from one point to another on a demand curve
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Change in quantity demanded
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A schedule or curve that shows the amounts of a product that producers are willing to make available for sale at each of a series of possible prices during a specific period
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Supply
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The principle that, other things equal, an increase in the price of a product will increase to quantity of it supplied; and conversely for a price decrease
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Law of supply
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Curve illustrating the direct relationship between the quantity supplied of a product and its price, other things equal
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Supply curve
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Factors other than price that determine the quantities supplied of products
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Determinants of supply
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A change in the quantity supplied of a product at every price; a shift of the supply curve to the left or right
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Change in supply
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