4.6: Key Terms
- Page ID
- 162644
\( \newcommand{\vecs}[1]{\overset { \scriptstyle \rightharpoonup} {\mathbf{#1}} } \)
\( \newcommand{\vecd}[1]{\overset{-\!-\!\rightharpoonup}{\vphantom{a}\smash {#1}}} \)
\( \newcommand{\id}{\mathrm{id}}\) \( \newcommand{\Span}{\mathrm{span}}\)
( \newcommand{\kernel}{\mathrm{null}\,}\) \( \newcommand{\range}{\mathrm{range}\,}\)
\( \newcommand{\RealPart}{\mathrm{Re}}\) \( \newcommand{\ImaginaryPart}{\mathrm{Im}}\)
\( \newcommand{\Argument}{\mathrm{Arg}}\) \( \newcommand{\norm}[1]{\| #1 \|}\)
\( \newcommand{\inner}[2]{\langle #1, #2 \rangle}\)
\( \newcommand{\Span}{\mathrm{span}}\)
\( \newcommand{\id}{\mathrm{id}}\)
\( \newcommand{\Span}{\mathrm{span}}\)
\( \newcommand{\kernel}{\mathrm{null}\,}\)
\( \newcommand{\range}{\mathrm{range}\,}\)
\( \newcommand{\RealPart}{\mathrm{Re}}\)
\( \newcommand{\ImaginaryPart}{\mathrm{Im}}\)
\( \newcommand{\Argument}{\mathrm{Arg}}\)
\( \newcommand{\norm}[1]{\| #1 \|}\)
\( \newcommand{\inner}[2]{\langle #1, #2 \rangle}\)
\( \newcommand{\Span}{\mathrm{span}}\) \( \newcommand{\AA}{\unicode[.8,0]{x212B}}\)
\( \newcommand{\vectorA}[1]{\vec{#1}} % arrow\)
\( \newcommand{\vectorAt}[1]{\vec{\text{#1}}} % arrow\)
\( \newcommand{\vectorB}[1]{\overset { \scriptstyle \rightharpoonup} {\mathbf{#1}} } \)
\( \newcommand{\vectorC}[1]{\textbf{#1}} \)
\( \newcommand{\vectorD}[1]{\overrightarrow{#1}} \)
\( \newcommand{\vectorDt}[1]{\overrightarrow{\text{#1}}} \)
\( \newcommand{\vectE}[1]{\overset{-\!-\!\rightharpoonup}{\vphantom{a}\smash{\mathbf {#1}}}} \)
\( \newcommand{\vecs}[1]{\overset { \scriptstyle \rightharpoonup} {\mathbf{#1}} } \)
\( \newcommand{\vecd}[1]{\overset{-\!-\!\rightharpoonup}{\vphantom{a}\smash {#1}}} \)
Key Terms
Please review the following key terms. (4)(5)
Ceteris paribus — other things being equal.
Complements — goods that are often used together so that consumption of one good tends to enhance consumption of the other.
Demand curve — a graphic representation of the relationship between price and quantity demanded of a certain good or service, with quantity on the horizontal axis and the price on the vertical axis.
Demand schedule — a table that shows a range of prices for a certain good or service and the quantity demanded at each price.
Demand — the relationship between price and the quantity demanded of a certain good or service.
Equilibrium price — the price where quantity demanded is equal to quantity supplied.
Equilibrium quantity — the quantity at which quantity demanded and quantity supplied are equal for a certain price level.
Equilibrium — the situation where quantity demanded is equal to the quantity supplied; the combination of price and quantity where there is no economic pressure from surpluses or shortages that would cause price or quantity to change.
Factors of production — the combination of labor, materials, and machinery that is used to produce goods and services; also called inputs.
Inferior good — a good in which the quantity demanded falls as income rises, and in which quantity demanded rises and income falls.
Inputs — the combination of labor, materials, and machinery that is used to produce goods and services; also called factors of production.
Law of demand — the common relationship that a higher price leads to a lower quantity demanded of a certain good or service and a lower price leads to a higher quantity demanded, while all other variables are held constant.
Law of supply — the common relationship that a higher price leads to a greater quantity supplied and a lower price leads to a lower quantity supplied, while all other variables are held constant.
Normal good — a good in which the quantity demanded rises as income rises, and in which quantity demanded falls as income falls.
Price — what a buyer pays for a unit of the specific good or service.
Quantity demanded — the total number of units of a good or service consumers are willing to purchase at a given price.
Quantity supplied — the total number of units of a good or service producers are willing to sell at a given price.
Shift in demand — when a change in some economic factor (other than price) causes a different quantity to be demanded at every price.
Shift in supply — when a change in some economic factor (other than price) causes a different quantity to be supplied at every price.
Shortage — at the existing price, the quantity demanded exceeds the quantity supplied; also called excess demand.
Substitute — a good that can replace another to some extent, so that greater consumption of one good can mean less of the other.
Supply curve — a line that shows the relationship between price and quantity supplied on a graph, with quantity supplied on the horizontal axis and price on the vertical axis.
Supply schedule — a table that shows a range of prices for a good or service and the quantity supplied at each price.
Supply — the relationship between price and the quantity supplied of a certain good or service
.
Surplus — at the existing price, quantity supplied exceeds the quantity demanded; also called excess supply (1) .
- Principles of Macroeconomics. Authored by: OpenStax. Located at: http://cnx.org/contents/4061c832-098e-4b3c-a1d9-7eb593a2cb31@11.11. License: CC BY: Attribution