complements
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goods and services that are used together and have a direct relationship
trade-off
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the idea that, because of scarcity, producing more of one good or service
means producing less of another good or service
law of supply
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the rule that, holding everything else constant, increases in price cause
increases in the quantity supplied, and decreases in price cause decreases
in quantity supplied
market economy
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an economy in which the decisions of households and firms interacting in
markets allocate economic resources
price floor
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a legally determined minimum price that sellers may receive
economic variable
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something measurable that can have different values, such as the incomes
of doctors
, income effect
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the change in the quantity demanded of a good that results from the effect
of a change in the good's price on consumers' purchasing power
deadweight loss
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the reduction in economic surplus from a market not being in competitive
equilibrium
consumer surplus
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the difference between the highest price a consumer is willing to pay for a
good or service and the actual price the consumer pays
macroeconomics
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goods and services that are used together and have a direct relationship
trade-off
Give this one a try later!
the idea that, because of scarcity, producing more of one good or service
means producing less of another good or service
law of supply
,Give this one a try later!
the rule that, holding everything else constant, increases in price cause
increases in the quantity supplied, and decreases in price cause decreases
in quantity supplied
market economy
Give this one a try later!
an economy in which the decisions of households and firms interacting in
markets allocate economic resources
price floor
Give this one a try later!
a legally determined minimum price that sellers may receive
economic variable
Give this one a try later!
something measurable that can have different values, such as the incomes
of doctors
, income effect
Give this one a try later!
the change in the quantity demanded of a good that results from the effect
of a change in the good's price on consumers' purchasing power
deadweight loss
Give this one a try later!
the reduction in economic surplus from a market not being in competitive
equilibrium
consumer surplus
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the difference between the highest price a consumer is willing to pay for a
good or service and the actual price the consumer pays
macroeconomics
Give this one a try later!