Economics Ch 3

Downward sloping

A decreases in the demand for computers.

There is an increase in the supply of gasoline.

A schedule that shows the carious amounts of a product producers are willing and able to produce at each price in a series of possible prices during a specific period time.

When the quantity supplied of a product is less than the quantity demanded.

A surplus will occur and producers will produce less and lower the price.

achieve an equilibrium price.

Where the demand and supply curves intersect.

An increase in the price of lettuce and a decrease in quantity purchased.

Government-set price floors and price ceilings.

The schedule or curve that shows the carious amounts of a product that consumers will buy at each of a series of possible prices during a specific period.

The principle that, other things equal, as price falls, the quantity demanded rises, and as price rises, quantity of demand falls.

Downward slope. Quantity demanded on the horizontal axis. Price on the vertical axis.

Factors other then price that locate the position of a demand curve.

A change in the quantity demanded of a product at ever price; a shift of the demand curve to the left or right

A movement from one point to another on a fixed demand curve

A good (or service) that is used in conjunction with some other good (or service).

A good (or service) that can be used in place od some other good (or service).

The principle that, other things equal, as price rises, the quantity supplied rises, and as price falls, the quantity supplied falls.

The price in a competitive market at which the quantity demanded and quantity supplied of a product are equal.

The quantity demanded and quantity supplied that occur at the equilibrium price in a competitive market.

The amount by which the quantity supplied of a product exceeds the quantity demanded at a specific (above-equilibrium) price.

The amount by which the quantity demanded of a product exceeds the quantity supplied at a specific (below-equilibrium) Price.

Surplus is created

Shortage is created

Firms are producing in the most cost effect manner

Price is equal to marginal cost.