Very Demanding
The desire to own something along with the ability to pay for it.
Demand
The amount of goods available
Supply
Cost that does not change
Fixed cost
The change in output from hiring one additional unit of labor
Marginal Product of Labor
The point where supply and demand meet
Equilibrium
When price goes up consumers buy less. When price goes down consumers buy more.
Law of Demand
The slope of a supply curve is...
Positive
Costs that rise and fall based on the amount produced
Variable cost
When the marginal product of labor increases as the amount of workers goes up
Increasing marginal returns
When demand is highly responsive to change
Elastic
Table that lists the quantity of a good that each person will purchase at each market price
Demand Schedule
The higher the price, the higher the quantity produced
Law of supply
The cost of producing one or more unit of a good.
Marginal costs
When the marginal product of labor decreases as the amount of workers goes up
Decreasing marginal returns
All things held constant
Ceteris Paribus
The slope of a demand curve is...
Negative
What is it called when supply and demand do not match up
Disequilibrium
Financial and opportunity costs consumers pay while searching for a good
Search cost
When the marginal product of returns goes up when you add a workers, but it does not go up as much as it previously did
Diminishing marginal returns
The simplest market structure where many firms produce the same product
Perfect competition
When the demand is more than the quantity supplied
Excess demand or shortage
When the quantity supplied is more than the quantity demanded
Excess supply or surplus
Total revenue minus a firms costs is what
Profit
The additional income of from selling one or more unit
Marginal revenue
In order for an item to be elastic % change in demand must be bigger or smaller than % change in price
Bigger