Econ 103 Quiz 1 Review Sheet, Study notes of Microeconomics

Download Econ 103 Quiz 1 Review Sheet and more Study notes Microeconomics in PDF only on Docsity! Ceteris paribus.Other things being equal Complements.Goods that are often used together so that consumption of one good tends to enhance consumption of the other Consumer surplus.The extra benefit consumers receive from buying a good or service, measured by what the individuals would have been willing to pay minus the amount that they actually paid Deadweight loss.The loss in social surplus that occurs when a market produces an inefficient quantity Demand.The relationship between price and the quantity demanded of a certain good or service Demand curve.A graphic representation of the relationship between price and quantity demanded of a certain good or service, with quantity on the horizontal axis and the price on the vertical axis Demand schedule.A table that shows a range of prices for a certain good or service and the quantity demanded at each price Economic surplus.See social surplus Equilibrium.The situation where quantity demanded is equal to the quantity supplied; the combination of price and quantity where there is no economic pressure from surpluses or shortages that would cause price or quantity to change Equilibrium price.The price where quantity demanded is equal to quantity supplied Equilibrium quantity.The quantity at which quantity demanded and quantity supplied are equal for a certain price level Excess demand.At the existing price, the quantity demanded exceeds the quantity supplied; also called a shortage Excess supply.At the existing price, quantity supplied exceeds the quantity demanded; also called a surplus Factors of production.The resources such as labor, materials, and machinery that are used to produce goods and services; also called inputs Inferior good.A good in which the quantity demanded falls as income rises, and in which quantity demanded rises and income falls Inputs.The resources such as labor, materials, and machinery that are used to produce goods and services; also called factors of production Law of demand.The common relationship that a higher price leads to a lower quantity demanded of a certain good or service and a lower price leads to a higher quantity demanded, while all other variables are held constant Law of supply.The common relationship that a higher price leads to a greater quantity supplied and a lower price leads to a lower quantity supplied, while all other variables are held constant Normal good.A good in which the quantity demanded rises as income rises, and in which quantity demanded falls as income falls