Macroeconomics chapter 6 vocab PDF

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Chapter 6 economics Study online at quizlet.com/_4p2ao7 1.

change in demand

a shift in the D curve occurs when a non-price determinant of demand changes

2.

change in quantity demanded

a movement along the demand curve that occurs in response to a change in price

3.

change in quantity supplied

change in amount offered for sale when the price changes

4.

change in supply

a shift in the S curve occurs when a non-price determinant of supply changes

5.

equilibrium

Quantity demanded = quantity supplied

6.

equilibrium price

Price at which a good is bought and sold in a market that is in equilibrium

7.

equilibrium quantity

Quantity of a good that is bought and sold in a market that is in equilibrium

8.

inventory

the stock of goods or merchandise on hand

9.

price ceiling

a maximum price that can be legally charged for a good or service (rent control)

10.

price floor

a legal minimum on the price at which a good can be sold (minimum wage)

11.

shortage

quantity demanded is greater than quantity supplied (mojo donuts sells out every day)

12.

surplus

the condition in which the quantity supplied of a good is greater than the quantity demanded (customers think a shirt is too expensive so sellers have to lower the price)...