Jake Fowler

Chapter 4 Vocab

Market a group of buyers and sellers for a particular good/services

Competitive market market with buyers and sellers with impact on prices
Quantity demanded the amount that buyers are willing and able to purchase
Law of demand When price rises demand goes down and vice versa
Demand schedule a table that shows relationship between price of good and
quantity demanded
Demand curve downward-slope line relating price and quantity demanded
Normal good when demand for good falls when income falls
Inferior good when demand for good rises when income falls
Law of S+D when surpluses and shortages move towards equilibrium
Substitutes two goods in which and increase in price moves for an increase
demand of the other
Complements two goods in which and increase in price leads to a decrease in
demand
Quantity supplied the amount of good that sellers and willing and able to sell
Law of supply the quantity rises when the price of the good rises
Supply schedule a table that shows relationship between price of good and
quantity supplied
Supply curve relationship between price and quantity supplied
Equilibrium a situation in which the quantity supplied equals the quantity
demanded
Equilibrium price the price that balances quantity supplied and quantity
demanded
Equilibrium quantity the quantity supplied that balances (STATED ABOVE)
Surplus a situation in which quantity supplied is greater that quantity demanded
Shortage a situation in which quantity demanded is greater that quantity
supplied