Cell Passive Transport Webquest
Unit 2: Supply and Demand
Study Guide and Review Questions
Rachel Bracker, Scott Doyle,
Lyra Hall and Christine Wong
Winter 2010
Period 3 Terms
Background and Straightforward concepts:
1. Competition: rivalry in supplying or acquiring an economic service or good
2. Free Market: a market where the price is arranged by the mutual consent of sellers and buyers, without government or trader manipulation
3. Equilibrium: when supply and demand are balanced at a price and quantity that is most beneficial to both buyers and sellers.
4. Market Price: full price paid by the purchaser for goods and services (includes taxes)
5. Ceteris Paribus: “all things remaining constant” (Latin phrase) used to illustrate many concepts in economics
6. Law of Demand: ceteris paribus, consumer demand will decrease as price increases, and consumer demand will increase as price decreases.
7. Law of Supply: quantity supplied is directly proportional to price, so a producer will supply more of a good or service if the price is higher
8. Complementary Goods: two goods generally used together (more usage of one causes more usage of the other, such as cars and gasoline)
9. Substitute Goods: two goods where one can be used (substituted) in place of the other
10. Short Run: decision-making time for a firm with at least one set factor of production
11. Long Run: decision-making time of a firm where all production factors can change
12. Inferior Goods: goods which decrease in demand when consumer income rises
13. Normal Goods: goods which increase in demand when consumer income rises
Demand:
1. Demand: how much customers are willing and able to pay for a good or service
2. Quantity Demanded: the amount of a good or service that consumers plan to buy at a given price in a given time period
3. Demand Curve: a line (or curve) representing how much of a good or service will be demanded at a certain price. The curve slopes downwards.
Study Guide and Review Questions
Rachel Bracker, Scott Doyle,
Lyra Hall and Christine Wong
Winter 2010
Period 3 Terms
Background and Straightforward concepts:
1. Competition: rivalry in supplying or acquiring an economic service or good
2. Free Market: a market where the price is arranged by the mutual consent of sellers and buyers, without government or trader manipulation
3. Equilibrium: when supply and demand are balanced at a price and quantity that is most beneficial to both buyers and sellers.
4. Market Price: full price paid by the purchaser for goods and services (includes taxes)
5. Ceteris Paribus: “all things remaining constant” (Latin phrase) used to illustrate many concepts in economics
6. Law of Demand: ceteris paribus, consumer demand will decrease as price increases, and consumer demand will increase as price decreases.
7. Law of Supply: quantity supplied is directly proportional to price, so a producer will supply more of a good or service if the price is higher
8. Complementary Goods: two goods generally used together (more usage of one causes more usage of the other, such as cars and gasoline)
9. Substitute Goods: two goods where one can be used (substituted) in place of the other
10. Short Run: decision-making time for a firm with at least one set factor of production
11. Long Run: decision-making time of a firm where all production factors can change
12. Inferior Goods: goods which decrease in demand when consumer income rises
13. Normal Goods: goods which increase in demand when consumer income rises
Demand:
1. Demand: how much customers are willing and able to pay for a good or service
2. Quantity Demanded: the amount of a good or service that consumers plan to buy at a given price in a given time period
3. Demand Curve: a line (or curve) representing how much of a good or service will be demanded at a certain price. The curve slopes downwards.