Unit 1.1 IB 11 Economics

A state of allocation where you cannot make one individual better off without hurting another

When the opportunity cost equals the value of consumption

Money given to producers in order to lower the price

The amount a buyer is willing to pay minus what he/she actually pays

An extreme inferior good, as income rises demand falls

The study of how allocation affects economic well-being

The price a seller sells a good for minus the cost at which he is willing to sell it

An increase in the price of one good decreases the demand for another.

Quantity Supplied is greater than quantity demanded

Consumer surplus and producer surplus added together

The quantity demanded of a good decreases as the price increases.

An unofficial market in a country with an official market

A market in which there are many buyers and sellers so that there is effect on market price.

The table that shows the relationship between price and quantity supplied

A good that has an upward sloping demand curve

A group of buyers and sellers of a particular good.

Money demanded by the government for facilities and services

The quantity supplied and the quantity demanded at equilibrium price.

A good for which demand increases as income increases.

Fairness of distribution of well-being within society

The price reaches the point where quantity supplied equals quantity demanded.

What buyers and sellers anticipate will happen in the market

Maximizing the total surplus received by all members of market

The price of any good adjusts to balance quantity supplied and the quantity demanded

Term for when quantity demanded is greater than quantity supplied

An increase in the price of one good leads to an increase in demand of another

The present demand that cannot be seen; potential demand

A state in the economy in which production accurately represents consumer preferences

The total surplus lost after something causes the quantity transacted to decrease

Amount of a good that sellers are willing and able to sell

The total benefit to society which is maximized at equilibrium

The maximum amount a buyer is willing to pay

The table that shows the relationship between the price and quantity demanded of a god.

The quantity supplied of a good increases as price increases.

The value a seller must give up to produce a good

Demand for good A depends on the demand for Good B

A good whose demand decreases as income increases.

The amount of a good that buyers are willing and able to purchase.

The price that balances quantity supplied and quantity demanded.

The graph of the relationship between price and quantity demanded of a good.

A graph that explains the relationship between price and quantity supplied.