Term
| Perfectly Competitive Market |
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Definition
| a market that meets the condition of (1) many buyers and sellers, (2) all firms selling identical products, and (3) no barriers to new firms entering the market |
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Definition
| a table showing the relationship between the price of a product and the quantity of the product demanded |
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Definition
| the amount of a good or service that a consumer is willing and able to purchase at a given price |
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Definition
| a curve that shows the relationship between the price of a product and the quantity of the product demanded |
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Definition
| the demand by all the consumers of a given good or service |
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Definition
| the rule that, holding everything else constant, when the 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 |
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Term
| Ceteris Paribus ("all else equal") Condition |
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Definition
| the requirement that when analyzing the relationship between two variables--such as price and quantity demanded--other variables must be held constant |
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Definition
| a good for which the demand increases as income rises and decreases as income falls |
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Definition
| a good for which the demand increases as income falls and decreases as income rises |
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Definition
| goods and services that can be used for the same purpose |
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Definition
| goods and services that are used together |
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Definition
| the characteristics of a population with respect to age, race, and gender |
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Definition
| the amount of a good or service that a firm is willing and able to supply at a given price |
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Definition
| a table that shows the relationship between the price of a product and the quantity of the product supplied |
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Definition
| a curve that shows the relationship between the price of a product and the quantity of the product supplied |
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Definition
| the rule that, holding everything else constant, increases in price cause increases in the quantity supplied, and decreases in price cause decreases in the quantity supplied |
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Definition
| a positive or negative change in the ability of a firm to produce a given level of output with a given quantity of inputs |
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Definition
| a situation in which quantity demanded equals quantity supplied |
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Term
| Competitive Market Equilibrium |
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Definition
| a market equilibrium with many buyers and many sellers |
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Definition
| a situation in which the quantity supplied is greater than the quantity demanded |
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Term
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Definition
| a situation in which the quantity demanded is greater than the quantity supplied |
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