|
|
LONG-RUN INDUSTRY SUPPLY CURVE: The relation between market price and the quantity supplied by all firms in a perfectly competitive industry after the industry as completed its long-run adjustment. The long-run industry supply curve effectively traces out a series of equilibrium prices and quantities the reflect long-run adjustments of a perfectly competitive industry to demand shocks. This long-run adjustment can take one of three paths: increasing, decreasing, and constant. These three adjustment paths indicate an increasing-cost industry, decreasing-cost industry, and constant-cost industry, respectively.
Visit the GLOSS*arama
|
|
|
|
|
Lesson 5: Demand | Unit 2: Law of Demand
|
Page: 5 of 20
|
|
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.
|
|
|
|
|
|
|
AGGREGATE EXPENDITURES The total expenditures on gross domestic product undertaken in a given time period by the four sectors--household, business, government, and foreign. Expenditures made by each of these sectors are commonly termed consumption expenditures, investment expenditures, government purchases, and net exports. Aggregate expenditures (AE) are a cornerstone in the study of macroeconomics, playing critical roles in Keynesian economics, aggregate market analysis, and to a lesser degree, monetarism. In particular, aggregate expenditures are combined with the price level as aggregate demand.
Complete Entry | Visit the WEB*pedia |
|
|
BEIGE MUNDORTLE
[What's This?]
Today, you are likely to spend a great deal of time calling an endless list of 800 numbers looking to buy either super soft, super cuddly, stuffed animals or a large stuffed brown and white teddy bear. Be on the lookout for spoiled cheese hiding under your bed hatching conspiracies against humanity.
Your Complete Scope
This isn't me! What am I?
|
|
|
Only 1% of the U.S. population paid income taxes when the income tax was established in 1914.
|
|
|
"Progress always involves risk. You can't steal second base and keep your foot on first. " -- Frederick B. Wilcox
|
|
IDA
International Development Association
|
|
|
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
|
|
