Microeconomics ch3

Substitutes in production are

goods that a firm can produce by using the same resources.

marginal cost

the lowest price at which someone is willling to sell, shown in a supply curve

quantityy demanded

is the amount that consumers plan to buy during a period of time at a particular price

money price

is the number od dollars that must be givven up

The equilibrium quantity is given by the formula ​

(a−c​)/(b ​+ d​)

relative pricec

the ratio of one money price to another

expected future prices

(change in demand) demand increases and demand curve shifts rightward

income

(change in demand) for a normal goodd, n increase in income increases demand and shifts the curve rightward for an inferior good, an increase in income decreases demand and shifts the demand curve leftward

at the equilibrium price

Buyers pay the highest price they are willing to pay for the last unit​ bought, and sellers receive the lowest price at which they are willing to supply the last unit sold

change in the quantity demanded

a movement along the demand curve

A riserise in the price of a cellphone​ ______ the quantity supplied and​ ______ supply.

increases​; does not change

competitive market

market that has many buyers and sellers, so no single buyer or seller can influence the price

A supply curve can be interpreted as a​

minimum-supply-price curvelong dash—a curve that shows the lowest price at which someone is willing to sell.

The law of supply states​ that,

other things remaining the​ same, the higher the price of a​ good, the greater is the quantity​ supplied; and the lower the price of a​ good, the smaller is the quantity supplied.

law of demand states

other things remaining the​ same, the higher the price of a​ good, the smaller is the quantity demanded; and the loweerr the price of a good, the greater is the quantity demanded

demand

relationship between the price of a good and the quantity demanded

complement

rise in the price of a good used with another good (complement)- decreases demand and shifts the demand curve leftward

substitute

rise in the price of a related good (substitute)- increases demand and shifts the demand curve reightward

change in demand

shift of the demand curve

demand curve

shows the relationship between the quantity demanded of a good quantity and its price, everything else remaining the same

the equilibrium price is given by the formula

​(ad​ + bc​)/(b​ + d​)