Supply and Demand: AP Macroeconomics UPDATED ACTUAL Questions and CORRECT Answers

Supply and Demand: AP Macroeconomics
UPDATED ACTUAL Questions and
CORRECT Answers
competitive market - CORRECT ANSWER - a market in which there are many buyers and
sellers of the same good or service, none of whom can influence the price at which the good or
service is sold.


supply and demand model - CORRECT ANSWER - a model of how a competitive market
works


demand schedule - CORRECT ANSWER - the actual amount of a good or service
consumers are willing and able to buy at specific price.


quantity demanded - CORRECT ANSWER - the actual amount of a good or service
consumers are willing and able to buy at some specific price.


demand curve - CORRECT ANSWER - graphical representation of the demand schedule.
It shows the relationship between quantity demanded and price.


law of demand - CORRECT ANSWER - the higher price for a good or service, all other
things being equal, leads people to demand smaller quantity of that good or service.


change in demand - CORRECT ANSWER - a shift of the demand curve, which changes
the quantity demanded at any given price.


movement along the demand curve - CORRECT ANSWER - change in the quantity
demanded of a good that is the result of a change in that good's price.


substitues - CORRECT ANSWER - if a rise in the price of one of the goods lead go an
increase in the demand for the other good.