Chapter 3 Vocabulary

Chapter 3 Vocabulary - Chapter 3 Vocabulary Theory- An...

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Chapter 3 Vocabulary Theory- An abstract representation of the real world designed with the intent to better understand the world. Market- Any place people come together to trade. Demand- The willingness and ability of buyers to purchase different quantities of a good at different prices during a specific time period. Law of Demand- As the price of a good rises, the quantity demanded of the good falls, and as the price of a good falls, the quantity demanded of the good rises, ceteris paribus. Ceteris Paribus- A Latin term meaning “all other things constant” or “nothing else changes” Demand Schedule- The numerical tabulation of the quantity demanded of a good at different prices. A demand schedule is the numerical representation of the law of demand. (Downward Sloping) Demand Curve- The graphical representation of the law of demand. Absolute (money) Price- The price of a good in money terms. Relative Price- The price of a good in terms of another good. Law of Diminishing Marginal Utility - For a given time period, the marginal (additional) utility or satisfaction gained by consuming equal successive u nits of a
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Chapter 3 Vocabulary - Chapter 3 Vocabulary Theory- An...

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