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Changes in supply
change in quantity supplied of a good thats caused by factors other than a change in price; cause: change in technology, resources prices, prices of other goods, # of suppliers
Complementary goods
when price of one increases, demand for the other decreases
Substitute goods
when price of one increases, demand for the other increases
Normal good
good whose demand increase/decreases with peoples income
Change in demand
change in quantity demanded of a good caused by other factors that change in price; cause: changes in income, taste, expectations, etc.
Longrun
time intervals suppliers are able to change quantity of all resources used to produce goods
Shortrun
time interval which suppliers are able to change quantity of some resources used to produce goods
Equilibrium price
quantity demanded equals quantity supplied
Excess demand
quantity demanded is greater than quantity supplied
Excess supply
different between quantity supplied and quantity demanded, with quantity supplied being greater
Supply curve
curve that depicts relationship between price and quantity supplied; remains unchanged
Market day supply
market situation which quantity of a good supplied is fixed, regardless of price
Supply schedule
shows specific quantity of goods that suppliers are willing to provide at different prices
Market demand
sum all individual demands in a market
Demand curves
curve that depicts relationship between price and quantity demanded; downward sloping means price and quantity are inversely related
Demand schedules
schedule showing specific quantity of a good or service that people are willing and able to buy at different prices; if price falls, demand increases
Law of demand
inverse relationship between price and quantity demanded of a good or service
Change in quality demanded
caused soley by a change in the price of that good
