ECONOMICS: KEY TERMS Demand, Supply and Market Forces Definition What that Demand curve Shifts to the left less – shifts because Change in people want it people are now demand willing to buy Shifts to the right – different amounts more people want it at the same prices Products that increase the value of other products When and demand match up Complements Products related in such a way that an (higher price = lower increase in the demand) price of one reduces the demand in both The desire, ability, Demand How much stuff the and willingness to customer wants buy a product A graph showing the quantity A graph of how much a demanded at each Demand curve customer would by at and every price each price that might prevail in the market A listing that the various quantities Demand demanded of a A list of how much a schedule particular product customer would buy at at all prices that each price might prevail in the market at a given time When the price affects A given change in the demand price causes a Elastic relatively larger If people don’t really change in quantity need a product, the demanded demand is elastic A measure of responsiveness that tells us how a dependent Whether or not a price variable such as Elasticity change will change the quantity responds demand for a product to a change in an independent variable such as price
ECONOMICS: KEY TERMS Demand, Supply and Market Forces Definition What that Change in demand Demand curve shifts because people are now willing to buy different amounts at the same prices Shifts to the left – less people want it Shifts to the right – more people want it Complements Products that increase the value of other products Products related in such a way that an increase in the price of one reduces the demand in both When and demand match up (higher price = lower demand) Demand The desire, ability, and willingness to buy a product How much stuff the customer wants Demand curve A graph showing the quantity demanded at each and every price that might prevail in the market A graph of how much a customer would by at each price Demand schedule A listing that the various quantities demanded of a particular product at all prices that might prevail in the market at a given time A list of how much a customer would buy at each price Elastic A given change in price causes a relatively larger change in quantity demanded When the price affects the demand If people don’t really need a product, the demand is elastic Elasticity A measure of responsiveness that tells us how a dependent variable such as quantity responds to a change in an independent variable such as price Whether or not a price change will change the demand for a product
econ_key_terms.docx