Google
Saturday 
April 21, 2018 

AmosWEB means Economics with a Touch of Whimsy!

AmosWEBWEB*pediaGLOSS*aramaECON*worldCLASS*portalQUIZ*tasticPED GuideXtra CrediteTutorA*PLS
REGULATION: Government rules or laws that control the activities of businesses and consumers. The motivation for regulation is that businesses are inclined to do things that are harmful to the public--actions which need to be prevented or otherwise controlled. Regulation is essentially an extension of government's authority to protect one member of society from another. It tends to take one of two forms--(1) industry regulation that's intended to prevent firms from gaining and abusing excessive market control and (2) social regulation that seeks to protect consumers for problems caused by pollution, unsafe products, and the lack of information (market failure).

Visit the GLOSS*arama

Most Viewed (Number) Visit the WEB*pedia

Lesson 5: Demand | Unit 2: Law of Demand Page: 5 of 20

Topic: Definition <=PAGE BACK | PAGE NEXT=>

The law of demand is the basic principle underlying demand, one of our most important economic laws.

A definition:

The law of demand is an inverse relationship between demand price and the quantity demanded, ceteris paribus.

  • Inverse relationship means that people buy more of a good if the price is lower and less if the price is higher.
  • In terms of scientific method, price causes quantity demanded. A change in the price causes a change in the quantity demanded.
Ceteris paribus is important to the law of demand.
  • Ceteris paribus means other things remain unchanged.
  • Law of demand applies exclusively to the relationship between demand price and quantity demanded.
  • All other things that can affect demand must remain constant to avoid distorting this relationship.
  • Because demand is affected by many factors other than price, a buyer may buy larger amounts of a good even with a higher price.
  • Other factors that affect demand are called demand determinants.

Course Home | Lesson Menu | Page Back | Page Next

MARGINAL REVENUE CURVE, MONOPOLY

A curve that graphically represents the relation between the marginal revenue received by a monopoly for selling its output and the quantity of output sold. Because a monopoly is a price maker and faces a negatively-sloped demand curve, its marginal revenue curve is also negatively sloped and lies below its average revenue (and demand) curve. A monopoly maximizes profit by producing the quantity of output found at the intersection of the marginal revenue curve and marginal cost curve.

Complete Entry | Visit the WEB*pedia


APLS

ORANGE REBELOON
[What's This?]

Today, you are likely to spend a great deal of time driving to a factory outlet seeking to buy either a rim for your spare tire or decorative celebrity figurines. Be on the lookout for letters from the Internal Revenue Service.
Your Complete Scope

This isn't me! What am I?

Junk bonds are so called because they have a better than 50% chance of default, carrying a Standard & Poor's rating of CC or lower.
"Inside the ring or out, ain't nothing wrong with going down. It's staying down that's wrong. "

-- Muhammad Ali

L
Total Liquid Assets
A PEDestrian's Guide
Xtra Credit
Tell us what you think about AmosWEB. Like what you see? Have suggestions for improvements? Let us know. Click the User Feedback link.

User Feedback



| AmosWEB | WEB*pedia | GLOSS*arama | ECON*world | CLASS*portal | QUIZ*tastic | PED Guide | Xtra Credit | eTutor | A*PLS |
| About Us | Terms of Use | Privacy Statement |

Thanks for visiting AmosWEB
Copyright ©2000-2018 AmosWEB*LLC
Send comments or questions to: WebMaster