the world.

Economics move

David Figueroa #:15 9/27/2017

Mrs.Zully/Economy Foldable
Economics
Vocabulary
1. Complements: A complement refers to a
complementary good or service that is used in
conjunction with another good or service.
2. Demand Curve: The demand curve is a
graphical representation of the relationship
between the price of a good or service and the
quantity demanded for a given period of time.
3. Demand Schedule: The demand schedule, in
economics, is a table of the quantity
demanded of a good at different price levels.
10. Real Income Effect: The income effect
4. Equilibrium Price: Equilibrium is the state in
which market supply and demand balance
each other and, as a result, prices become
stable.
9. Rationing Function of Price: Rationing is
the artificial restriction of raw materials,
goods or services. Rationing commonly
occurs when governments fear a shortage
and want to make sure people have
access to necessities, such as after a
natural disaster or during a war.
Governments can also impose rationing
in the face of failed policies such as
central planning, or may be forced to use
rationing as a result of shortages.
represents the change in an individual's
or economy's income and shows how
that change impacts the quantity
demanded of a good or service.
15. Supply Curve: The supply curve is a
graphical representation of the
relationship between the price of a good
or service and the quantity supplied for a
given period of time.
16. Surplus: A surplus is used to describe
many excess assets including income,
profits, capital and goods.
17. Market Clearing Price: Both the quantity
supplied and the quantity demanded per
year.

5. Law of Demand: The law of demand is a
microeconomic law that states, all other
factors being equal, as the price of a good or
service increases, consumer demand for the
good or service will decrease, and vice versa.
6. Law of Supply: The law of supply is the
microeconomic law that states that, all other
factors being equal, as the price of a good or
service increases, the quantity of goods or
services that suppliers offer will increase, and
vice versa.
7. Nominal Price: The law of supply is the
microeconomic law that states that, all other
factors being equal, as the price of a good or
service increases, the quantity of goods or
services that suppliers offer will increase, and
vice versa.
8. Money Price: The actual amount of money that
is exchanged when commodities are bought
and sold.
11. Relative Price: Relative value is a
method of determining an asset's value
that takes into account the value of
similar assets.
12. Shortage: A shortage is a situation in
which demand for a good or service
exceeds the available supply.
13. Substitution Effect: The substitution
effect is the economic understanding
that as prices rise or income
decreases consumers will replace
more expensive items with less costly
alternatives.
14. Supply Schedule: Supply schedule is a
chart that shows how much product a
supplier will have to produce to meet
consumer demand at a specified price
based on the supply curve.