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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 seller’s 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
- Supply And Demand, #, Quantity Demand, Equilibnrium