Chapter 3 and 6

The total number of units of a good or service consumers are willing to purchase at a given price

• quantity demanded

• quantity supplied

• producer surplus

• price floor

The total number of units of a good or service producers are willing to sell at a given price

• shortage

• supply schedule

• total surplus

• quantity supplied

other things being equal

• deadweight loss

• ceteris paribus

• equilibrium

• price control

goods that are often used together so that consumption of one good tends to enhance consumption of the other

• complements

• inferior good

• substitute

• surplus

a graphic representation of the relationship between price and quantity demanded of a certain good or service, with quantity on the horizontal axis and the price on the vertical axis

• equilibrium quantity

• production possibilities frontier

• demand curve

• supply curve

The situation where quantity demanded is equal to the quantity supplied; the combination of price and quantity where there is no economic pressure from surpluses or shortages that would cause price or quantity to change

• excess supply

• equilibrium

• normal good

• ceteris paribus

the resources such as labor, materials, and machinery that are used to produce goods and services; also called inputs

• factors of production

• equilibrium quantity

• producer surplus

• quantity supplied

a good in which the quantity demanded falls as income rises, and in which quantity demanded rises and income falls

• excess demand

• inputs

• normal good

• inferior good

a good in which the quantity demanded rises as income rises, and in which quantity demanded falls as income falls

• excess supply

• normal good

• inferior good

• capital good

government laws to regulate prices instead of letting market forces determine prices

• deadweight loss

• economic surplus

• the price where quantity demanded is equal to quantity supplied

• price control