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Unformatted text preview: The Interaction of Demand and Supply- Perfect Competitive Market a market that meets the conditions of (1) Many buyers and sellers (2) All firms selling identical products (3) No barriers to new firms entering the market- Demand Schedule a table showing the relationship between the price of a product and the quantity of the product demanded- Quantity Demanded the amount of a good or service that a consumer is willing and able to purchase at a given price- Demand Curve a curve that shows the relationship between the price of a product and the quantity of the product demanded- Market Demand the demand by all the consumers of a given good or service- Law of Demand- the rule that, holding everything else constant, when the price of a product falls, the quantity demanded of the product will increase, and when the price of a product rises , the quantity demanded of the product will decrease- Substitution Effect the change in the quantity demanded of a good that results...
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- Fall '08