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| Question | Answer |
| amount of a good or service that a customer is willing and able to purchase at a given price | quantity demanded |
| a good for which the demand increases as income falls and decreases as income rises | inferior good |
| requirement that when analyzing the relationship between two variables (like price and quantity demanded) other variables must be held constant. | ceteris paribus condition |
| positive/negative change in the ability of a firm to produce a given level of output with a given quantity of inputs | technological change |
| a situation in which quantity demanded equals quantity supplied | market equilibrium |
| table that shows the relatinoship between the price of a produce and quantity of the product demanded | demand schedule |
| goods and services that can be used for the same purpose | subsitutes |
| a situation in which the quantity demanded is greater than the quantity supplied | shortage |
| change in quantity demanded of a good that results from a change in price making the good more or less expensive relative to other goods that are subsitutes | substitution effect |
| the rule that, holding all else constant, when price of a product falls, the quantity demanded of the product will increase and when the price of a product rises the quantity demanded of the product will decrease | law of demand |
| a curve that shows the relationship between the price of a product and the quantity of the product demanded | demand curve |
| a market equilibrium with many buyters and sellers | competetitive market equilibrium |
| a good for which the demand increases as income rises and decreases as income falls | normal good |
| a table that shows the relationship between the price of a product and the quantity of the product supplied | supply schedule |
| a market that has: 1. many buyers and sellers 2. all firms are selling identical products 3. no barriers to new firms entering the market | perfectly competetitive market |
| demand by all the consumers of a given good or service | market demand |
| the rule that, holding all else constant, increase in price causes increases in the quantity supplied and decreases in price causes decreases in the quantity supplied | law of supply |
| a situation in which the quantity supplied is greater than the quantity demanded | surplus |
| a curve that shows the relationship between the price of a product and the quantity of the product supplied | supply curve |
| the amount of a good or service that a firm is willing and able to supply at a given price | quantity supplied |
| goods and services that are used together | complements |
| the change in quantity demanded of a good that results from the effect of a change in the good's price on consumers' purchasing power | income effect |
| characteristics of a population with respect to age, gender, and race. | demographics |
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