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Chapter 3 Vocabulary

Teacher: Professor Glenda Evans
Across
Shows a positive relationship between price ad quantity supplied
A maximum price set by the government for sale of a product or resource
A higher price for a good encourages consumers to search for cheaper substitutes and thus buy less of it
Higher price for a good decreases the purchasing power of consumers' incomes so they can't buy as much of the good
An increase or decrease in the entire demand schedule and the demand curve
The factor that influence demand other than price
Occurs when resources are devoted to the production of goods and services society most highly values
Occurs when goods and services society desires are being produced in the least costly way
A good that is used with another good
A graphic representation of supply and the law of supply
An increase or decrease in the entire supply schedule and the supply curve
Down
Occurs when the price of a product is below the market equilibrium price
A product demanded when consumers' income decreases
Factors that influence supply other than price
States there is an inverse or negative relationship between price and quantity demanded
Schedule of prices and the quantities that buyers would purchase at each of these prices during a selected period of time
A good that can be used in place of another
Has a downward slope and is a graphic representation of the law of demand
Any institution or mechanism that brings together buyers and sellers of a particular good or service
A schedule of prices and the quantities that sellers will sell at each of these prices at some period of time