Economic Concepts Flashcards

Front

The quantity of a good or service that consumers are willing and able to buy

Back

demand

Front

Consumers buy more of a good when its price decreases and less when its price increases

Back

law of demand

Front

Ability or capacity of a good or service to be useful and give satisfaction to someone

Back

utility

Front

Decrease in satisfaction or usefulness from having one more unit of the same product

Back

diminishing marginal utility

Front

The extent to which a change in price causes a change in the quantity demanded

Back

demand elasticity

Front

The quantity of something that producers have available for sale

Back

supply

Front

Tendency of suppliers to offer more of a good at a higher price

Back

law of supply

Front

A measure of how the quantity supplied responds to a change in price

Back

supply elasticity

Front

A situation in which quantity supplied is greater than quantity demanded

Back

surplus

Front

A situation in which quantity demanded is greater than quantity supplied

Back

shortage