NAME:______________________________ PERIOD:_______

Economics Unit 2
Vocabulary
the portion of a change in quantity demanded
that is due to a change in the relative price of the
good.
a measure of responsiveness that tells us how a
dependent variable, such as quantity demanded
or quantity supplied, responds to change in an
independent variable such as price
listing showing the quantity demanded at all
possible prices that might prevail in the market at
a given time.
movement along the demand curve showing that
a different quantity is purchased in response to a
change in price.
Price when quantity supplied equals quantity
demanded; price that clears the market.
change in the amount offered for sale in response
to a price change; movement along the supply
curve.
amount of a product a producer or seller would
be willing to offer for sale at all possible prices in
a market at a given point in time.
combination of quantities that someone would
be willing and able to buy over a range of
possible prices at a given moment
the highest legal price that can be charged for a
product.
situation where quantity supplied is greater than
quantity demanded at a given price.
additional satisfaction or usefulness obtained
from acquiring or consuming one more unit of a
product
that portion of a change in quantity demanded
caused by a change in a consumer’s income when
the price of a product changes

principle that more will be offered for sale at

higher prices than at lower prices
a measure of responsiveness that tells us how a
dependent variable, such as quantity demanded
or quantity supplied, responds to change in an
independent variable such as price

the lowest legal price that can be paid for a

product.
NAME:______________________________ PERIOD:_______

something that motivates.

rule stating that more will be demanded at lower

prices and less at higher prices; an inverse
relationship between price and quantity
demanded.
different amounts of a product are demanded at
every price, causing the demand curve to shift to
left or to the right.
different amounts offered for sale at each and
every possible price in the market; shift of the
supply curve.
situation where quantity supplied is less than
quantity demanded at a given price.
decrease in additional satisfaction or usefulness
as additional units of a product are acquired.
graph showing the quantity demanded at each
and every possible price that might prevail in the
market at a given time.

 Demand
 Supply
 Incentive
 Demand schedule
 Demand Curve
 Law of Demand
 Marginal Utility
 Diminishing Marginal Utility
 Change in the quantity Demand
 Income Effect
 Substitution Effect
 Change in Demand
 Elasticity
 Elasticity of Demand
 Law of Supply
 Change in Quantity Supplied
 Change in Supply
 Equilibrium Price
 Surplus
 Shortage
 Price Ceiling
 Price Floor