Supply and Demand
Vocab Wrap-up
Fall 2010
Wrapping Up Vocab for this
Unit
 Diminishing Marginal Utility: The more
you buy of something, the less
satisfaction you g...
 Normal Good: A good for which demand INCREASES as
income rises.
 Computers, TVs,
Inferior Good: A good for
which demand...
 Compliments: Goods that are consumed together.
 Peanut butter and Jelly
 Hammers and nails
 Substitutes: Goods that a...
 Price Ceiling: Artificial price beyond
which a good may not increase
 Rent controls: NYC had a law
prohibiting rent ove...
 Quotas: Setting limits or goals on production/ importation
or sales
 Designed to allow increased competition by limitin...
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Supply and demand vocab wrapup 2010

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Some basic vocab for our intro to econ unit

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Supply and demand vocab wrapup 2010

  1. 1. Supply and Demand Vocab Wrap-up Fall 2010
  2. 2. Wrapping Up Vocab for this Unit  Diminishing Marginal Utility: The more you buy of something, the less satisfaction you get from it.  Buy a car, get great satisfaction  (you do not buy many cars in your life)  Buy a pencil, whoopie, big deal 1st Doughnut = YUMMM!! 2nd Doughnut = Yumm 3rd Doughnut = umm, yumm? 4th Doughnut = I’m full 5th Doughnut = ugg, no more
  3. 3.  Normal Good: A good for which demand INCREASES as income rises.  Computers, TVs, Inferior Good: A good for which demand DECREASES as income rises. Generic foods
  4. 4.  Compliments: Goods that are consumed together.  Peanut butter and Jelly  Hammers and nails  Substitutes: Goods that are consumed as replacements for other goods.  Price of coffee goes up, I substitute tea, or apple juice
  5. 5.  Price Ceiling: Artificial price beyond which a good may not increase  Rent controls: NYC had a law prohibiting rent over a certain price after WWII. Price Floors: Artificial low price (usually set by the government) beyond which a good may not fall Milk: Govt sets minimum price to keep dairy farmers from losing money.
  6. 6.  Quotas: Setting limits or goals on production/ importation or sales  Designed to allow increased competition by limiting imports  Protect ecosystems by limiting fishing or hunting catches  Encourage production by setting high goals (USSR under Stalin)

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