Econ Vocab Unit Flashcard P1

Front

Market: A group of buyers and sellers of a good or service

Back

A group of buyers and sellers of a particular good or service

Front

Buyers determine: Demand; Sellers determine: Supply.

Back

Demand, Supply

Front

Demand: Amount of a good/service a consumer is willing and able to buy at various prices.

Back

The amount of a good or service that a consumer is willing and able to buy at Various Prices.

Front

Law of Demand: Higher price = less demand.

Back

Quantity of a good rises when its price rises.

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Purchasing Power

Back

The income consumers can spend on goods and services.

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Income Effect

Back

As a person's income increases, so does their demand.

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Substitution Effect

Back

Replacing a more expensive product with a cheaper similar one.

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Demand Schedule: A table showing the relationship between a good's price and quantity demanded.

Back

The demand schedule is a table that shows the relationship between the price of the good and the quantity demanded.

Front

Demand Curve: A graph showing the relationship between a good's price and quantity demanded.

Back

The demand curve is a graph of the relationship between the price of a good and the quantity demanded.

Front

Elasticity of Demand: Degree to which price changes affect quantity demanded.

Back

Degree to which price changes affect quantity demanded.