U2 Test Review

the desire to own something and the ability to pay for it

• total revenue
• shortage
• demand
• diminishing marginal utility

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

• law of demand
• law of supply
• marginal utility
• supply curve

a table that shows the relationship between the price of a good and the quantity demanded

• law of supply
• demand curve
• demand schedule
• substitute good

a graph demonstrating the inverse relationship between the price of a good and the quantity demanded

• price floor
• demand curve
• supply
• inelastic demand

satisfaction or usefulness obtained from acquiring one more unit of a product

• marginal utility
• price floor
• demand curve
• surplus

The quantity of something that producers have available for sale

• shortage
• law of supply
• demand elasticity
• supply

producers offer more of a good as its price increases and less as its price falls

• law of supply
• supply schedule
• perfect inelasticity
• supply

a graph demonstrating the direct relationship between the price of a good and the quantity supplied

• elastic demand
• complementary good
• surplus
• supply curve

a table that shows the relationship between the price of a good and the quantity supplied

• supply curve
• marginal utility
• demand elasticity
• supply schedule

the point at which the demand for a product or service is equal to the supply of that product or service

• complementary good
• shortage
• Equilibrium
• perfect inelasticity