key definitions

key definitions - Econ 002 Wissink and Kyle January 30...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Ec o n 002 W i ss i nk and K y le J an uar y 30 Perfectly competitive market a market with a very large number of firms, each of which produces the same standardized product and is so small that it does not affect the market price of the good it produces ~ ( Demand schedule: a table of numbers that shows the relationship between price and quantity demanded by a consumer, ceteris paribus (everything else held fixed). Individua emand curve: a curve that shows . the relationship between price and quantity demanded by a consumer, ceteris paribus (everything else held fixed). . Law of demand: , thelower the price, the larger the quantity demanded. ' ," . ~ " Change in quantity de~ded: a change in the amount of a good demanded resulting from a change in the price of the good; represented grap~cally by a movement along the demand curve. Substitution Effect: the change in consumption resulting from a change in the price of one good relative to the price of other goods. Income Effect: ' the change in consumption resulting from an increase in the consumer's real income. MarKet demand curve: a curve snowing the relationship between price and the quantity demanded by all together, ceteris paribus (everything else held fixe~). Supply schedule: a table of numbers that shows the relationship between price and qu~tity supplied, ceteris paribus (everything else held fixed). ; . Individual supply curve: a curve that shows the relationship between price and quantity supplied by a producer, ceteris paribus (everything else held fixed). ' Law of supply: the higher the price, the larger the quantity · supplied. Change in quantity supplied : ~ change in the quantity supplied resulting from a change in the price of the good; represented graphically by a movement along the supply curve. Market
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/27/2008 for the course ECON 1120 taught by Professor Wissink during the Spring '05 term at Cornell.

Page1 / 3

key definitions - Econ 002 Wissink and Kyle January 30...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online