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Unformatted text preview: Law of supply the higher the price of a good, the greater the quantity supplied of it Change in quantity supplied: a change in sellers plans that occurs when the price of a good changes Change in supply: a change in sellers plans that occurs when some influence on these plan, other than the price of the good changes (ie producers change in cost of production graph shifts (supply curve) left /right Competetitive market a market that has many buyers sellers ; so no single buyer or seller can influence the price Equilibnrium price: the price at which the quantity odemand = quantity supplied Equilibrium supply Money price: the # of dollars that must be gien up in exchange fo a good or servces price tag Nominal price: the same as money Real price= the same meaning as relative; the ratio of the price of one good or serbie pto the price of another good or service-Relative price is the opportunity cost...
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- Winter '07