{"id":5153,"date":"2016-07-20T21:04:57","date_gmt":"2016-07-20T21:04:57","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/microeconomics\/?post_type=chapter&p=5153"},"modified":"2016-07-20T21:04:57","modified_gmt":"2016-07-20T21:04:57","slug":"glossary-supply-and-demand","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/atd-herkimer-microeconomics\/chapter\/glossary-supply-and-demand\/","title":{"raw":"Glossary: Supply and Demand","rendered":"Glossary: Supply and Demand"},"content":{"raw":"ceteris paribus<\/em><\/strong> other things being equal\n

command economy<\/strong> an economy where economic decisions are passed down from government authority and where resources are owned by the government; also called a \u201cplanned economy\u201d<\/p>\n

competitive market<\/strong> a large market in which\u00a0there is\u00a0a large number of buyers and sellers, so that no one can control the market price<\/p>\nfree market<\/strong> a market in which the\u00a0government does not intervene in any way\n

complements<\/strong> goods that are often used together, so consumption of one good tends to enhance consumption of the other<\/p>\n

demand <\/strong>the amount of a good or service that consumers are willing and able to purchase at each price<\/p>\n

demand curve<\/strong> a graphic representation of the relationship between price and quantity of a certain good or service demanded, with quantity on the horizontal axis and the price on the vertical axis<\/p>\n

demand schedule<\/strong> a table that shows a range of prices for a certain good or service and the quantity demanded at each price<\/p>\nequilibrium<\/strong> when the quantity demanded is equal to the quantity supplied\n\nequilibrium price<\/strong> the price where quantity demanded is equal to quantity supplied\n

equilibrium quantity<\/strong> the quantity at which quantity demanded and quantity supplied are equal for a certain price level<\/p>\ninferior good<\/strong> a product whose demand falls when income rises, and vice versa\n

inputs<\/strong> the combination of labor, materials, and machinery used to produce goods and services; also called \u201cfactors of production\u201d<\/em><\/p>\n

law of demand <\/strong>states that more of a good will be demanded (bought) the lower its price, and less of a good will be demanded (bought) the higher its price, ceteris paribus (other things being equal)<\/p>\n

law of supply<\/strong> states that more of a good will be provided the higher its price; less will be provided the lower its price,\u00a0ceteris paribus <\/em>(other things being equal)<\/p>\nmarket<\/strong> interaction between potential buyers and sellers; a combination of demand and supply\n

market economy<\/strong> an economy in which economic decisions are decentralized, resources are owned by private individuals, and businesses supply goods and services based on demand<\/p>\nnormal good<\/strong> a product whose demand rises when income rises, and vice versa\n\noutputs<\/strong> goods or services\n\nprice<\/strong> what a buyer pays for a unit of a specific good or service\n

quantity demanded<\/strong> the total number of units of a good or service that consumers are willing to purchase at a given price<\/p>\n

quantity supplied<\/strong> the total number of units of a good or service that producers are willing to sell at a given price<\/p>\n

shift in demand<\/strong> when a change in some economic factor (other than price) causes a different quantity to be demanded at every price<\/p>\n

shift in supply<\/strong> when a change in some economic factor (other than price) causes a different quantity to be supplied at every price<\/p>\n

shortage<\/strong> at the existing price, the quantity demanded exceeds the quantity supplied; also called \u201cexcess demand\u201d<\/em><\/p>\n

subsidy<\/strong> when the government pays a firm directly or reduces the firm's taxes if the firm carries out certain actions<\/p>\n

substitute<\/strong> a good that can replace another to some extent, so greater consumption of one good tends to mean less of the other<\/p>\nsupply<\/strong> the amount of a good or service that a producer is willing to supply at each price\n

supply curve<\/strong> 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<\/p>\n

supply schedule<\/strong> a table that shows a range of prices for a good or service and the quantity supplied at each price<\/p>\n

surplus<\/strong> at the existing price, the quantity supplied exceeds the quantity demanded; also called \u201cexcess supply\u201d<\/em><\/p>","rendered":"

ceteris paribus<\/em><\/strong> other things being equal<\/p>\n

command economy<\/strong> an economy where economic decisions are passed down from government authority and where resources are owned by the government; also called a \u201cplanned economy\u201d<\/p>\n

competitive market<\/strong> a large market in which\u00a0there is\u00a0a large number of buyers and sellers, so that no one can control the market price<\/p>\n

free market<\/strong> a market in which the\u00a0government does not intervene in any way<\/p>\n

complements<\/strong> goods that are often used together, so consumption of one good tends to enhance consumption of the other<\/p>\n

demand <\/strong>the amount of a good or service that consumers are willing and able to purchase at each price<\/p>\n

demand curve<\/strong> a graphic representation of the relationship between price and quantity of a certain good or service demanded, with quantity on the horizontal axis and the price on the vertical axis<\/p>\n

demand schedule<\/strong> a table that shows a range of prices for a certain good or service and the quantity demanded at each price<\/p>\n

equilibrium<\/strong> when the quantity demanded is equal to the quantity supplied<\/p>\n

equilibrium price<\/strong> the price where quantity demanded is equal to quantity supplied<\/p>\n

equilibrium quantity<\/strong> the quantity at which quantity demanded and quantity supplied are equal for a certain price level<\/p>\n

inferior good<\/strong> a product whose demand falls when income rises, and vice versa<\/p>\n

inputs<\/strong> the combination of labor, materials, and machinery used to produce goods and services; also called \u201cfactors of production\u201d<\/em><\/p>\n

law of demand <\/strong>states that more of a good will be demanded (bought) the lower its price, and less of a good will be demanded (bought) the higher its price, ceteris paribus (other things being equal)<\/p>\n

law of supply<\/strong> states that more of a good will be provided the higher its price; less will be provided the lower its price,\u00a0ceteris paribus <\/em>(other things being equal)<\/p>\n

market<\/strong> interaction between potential buyers and sellers; a combination of demand and supply<\/p>\n

market economy<\/strong> an economy in which economic decisions are decentralized, resources are owned by private individuals, and businesses supply goods and services based on demand<\/p>\n

normal good<\/strong> a product whose demand rises when income rises, and vice versa<\/p>\n

outputs<\/strong> goods or services<\/p>\n

price<\/strong> what a buyer pays for a unit of a specific good or service<\/p>\n

quantity demanded<\/strong> the total number of units of a good or service that consumers are willing to purchase at a given price<\/p>\n

quantity supplied<\/strong> the total number of units of a good or service that producers are willing to sell at a given price<\/p>\n

shift in demand<\/strong> when a change in some economic factor (other than price) causes a different quantity to be demanded at every price<\/p>\n

shift in supply<\/strong> when a change in some economic factor (other than price) causes a different quantity to be supplied at every price<\/p>\n

shortage<\/strong> at the existing price, the quantity demanded exceeds the quantity supplied; also called \u201cexcess demand\u201d<\/em><\/p>\n

subsidy<\/strong> when the government pays a firm directly or reduces the firm’s taxes if the firm carries out certain actions<\/p>\n

substitute<\/strong> a good that can replace another to some extent, so greater consumption of one good tends to mean less of the other<\/p>\n

supply<\/strong> the amount of a good or service that a producer is willing to supply at each price<\/p>\n

supply curve<\/strong> 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<\/p>\n

supply schedule<\/strong> a table that shows a range of prices for a good or service and the quantity supplied at each price<\/p>\n

surplus<\/strong> at the existing price, the quantity supplied exceeds the quantity demanded; also called \u201cexcess supply\u201d<\/em><\/p>\n\n\t\t\t

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Candela Citations<\/h3>\n\t\t\t\t\t
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