Glossary from chapter 3 "Demand and Supply" of the book OpenStax, Principles of Macroeconomics for AP® Courses
This glossary was extracted from Chapter 3 of the book OpenStax, Principles of Macroeconomics for AP® Courses. OpenStax CNX. 4 Aug 2017 which is licensed under a Creative Commons Attribution 4.0 International License.
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other things being equal
goods that are often used together so that consumption of one good tends to enhance consumption of the other
the relationship between price and the quantity demanded of a certain good or service
a graphic representation of the relationship between price and quantity demanded of a certain good or service, with quantity on the horizontal axis and the price on the vertical axis
a table that shows a range of prices for a certain good or service and the quantity demanded at each price
the situation where quantity demanded is equal to the quantity supplied; the combination of price and quantity where there is no economic pressure from surpluses or shortages that would cause price or quantity to change
the price where quantity demanded is equal to quantity supplied
the quantity at which quantity demanded and quantity supplied are equal for a certain price level
at the existing price, the quantity demanded exceeds the quantity supplied; also called a shortage
at the existing price, quantity supplied exceeds the quantity demanded; also called a surplus
the combination of labor, materials, and machinery that is used to produce goods and services; also called inputs
a good in which the quantity demanded falls as income rises, and in which quantity demanded rises and income falls
the combination of labor, materials, and machinery that is used to produce goods and services; also called factors of production
the common relationship that a higher price leads to a lower quantity demanded of a certain good or service and a lower price leads to a higher quantity demanded, while all other variables are held constant
the common relationship that a higher price leads to a greater quantity supplied and a lower price leads to a lower quantity supplied, while all other variables are held constant
a good in which the quantity demanded rises as income rises, and in which quantity demanded falls as income falls
what a buyer pays for a unit of the specific good or service
a legal maximum price
government laws to regulate prices instead of letting market forces determine prices
a legal minimum price
the total number of units of a good or service consumers are willing to purchase at a given price
the total number of units of a good or service producers are willing to sell at a given price
when a change in some economic factor (other than price) causes a different quantity to be demanded at every price
when a change in some economic factor (other than price) causes a different quantity to be supplied at every price
at the existing price, the quantity demanded exceeds the quantity supplied; also called excess demand
a good that can replace another to some extent, so that greater consumption of one good can mean less of the other
the relationship between price and the quantity supplied of a certain good or service
a line that shows the relationship between price and quantity supplied on a graph, with quantity supplied on the horizontal axis and price on the vertical axis
a table that shows a range of prices for a good or service and the quantity supplied at each price
at the existing price, quantity supplied exceeds the quantity demanded; also called excess supply