Enhance Your Learning with Economics - Supply and Demand Flash Cards for quick learning
The quantity of a good or service that producers are willing and able to offer for sale at various prices during a given time period.
The quantity of a good or service that consumers are willing and able to buy at various prices during a given time period.
The point at which the quantity demanded equals the quantity supplied, resulting in no shortage or surplus.
The inverse relationship between the price of a good and the quantity demanded, assuming other factors remain constant.
The direct relationship between the price of a good and the quantity supplied, assuming other factors remain constant.
A measure of the responsiveness of quantity demanded to a change in price.
A measure of the responsiveness of quantity supplied to a change in price.
Goods that can be used in place of one another, such as butter and margarine.
Goods that are typically consumed together, such as peanut butter and jelly.
A measure of the responsiveness of quantity demanded to a change in income.
A measure of the responsiveness of quantity demanded of one good to a change in the price of another good.
A legal maximum price set by the government, resulting in a shortage if set below the equilibrium price.
A legal minimum price set by the government, resulting in a surplus if set above the equilibrium price.
The difference between the maximum price a consumer is willing to pay for a good and the actual price they pay.
The difference between the minimum price a producer is willing to accept for a good and the actual price they receive.
The loss of economic efficiency that occurs when the quantity of a good traded is below the efficient equilibrium quantity.
Goods that are non-excludable and non-rivalrous, such as national defense or street lighting.
A cost or benefit that affects a party who did not choose to incur that cost or benefit.
A beneficial spillover effect that occurs when the production or consumption of a good or service benefits others.
A harmful spillover effect that occurs when the production or consumption of a good or service imposes costs on others.
A situation in which the allocation of goods and services by a free market is not efficient, often requiring government intervention.
A market structure characterized by a single seller with significant control over the supply of a good or service.
A market structure characterized by a few large firms that dominate the market and may collude to restrict competition.
A market structure characterized by many firms selling differentiated products, with some control over price.
A market structure characterized by many small firms selling identical products, with no control over price.
The additional satisfaction or benefit gained from consuming one more unit of a good or service.
The principle that as a person consumes more of a good, the additional satisfaction or benefit from each additional unit decreases.
The cost advantages that a firm can achieve by increasing its scale of production.
The value of the next best alternative that must be forgone in order to choose a particular option.
The ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than others.
The ability of an individual, firm, or country to produce more of a good or service than others using the same amount of resources.
The total value of all final goods and services produced within a country's borders in a given time period.
A sustained increase in the general price level of goods and services in an economy over time.
The percentage of the labor force that is unemployed and actively seeking employment.
The use of government spending and taxation to influence the economy, particularly in relation to aggregate demand.
The use of interest rates and other monetary tools by a central bank to control the money supply and influence the economy.
The total demand for goods and services in an economy at a given time, including consumption, investment, government spending, and net exports.
The total supply of goods and services in an economy at a given time, influenced by factors such as input costs and productivity.
A significant decline in economic activity, typically characterized by a contraction in GDP for two consecutive quarters.
An increase in the production of goods and services over time, often measured by the growth rate of real GDP.
A situation in which a country's imports exceed its exports, resulting in a negative balance of trade.
A situation in which a country's exports exceed its imports, resulting in a positive balance of trade.
The market in which currencies are bought and sold, facilitating international trade and investment.
The price of one currency in terms of another, determining the value of goods and services in international trade.
The use of trade barriers, such as tariffs and quotas, to protect domestic industries from foreign competition.
The unrestricted flow of goods and services between countries, without trade barriers or restrictions.
The increasing interconnectedness and interdependence of countries through trade, investment, and technology.
Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.