AP Macro Unit 1 Vocab #3

Front

Demand

Back

Different quantities of goods consumers are willing and able to buy at various prices.

Front

Supply: Different quantities of a good sellers are willing to sell at various prices.

Back

The different quantities of a good that sellers are willing and able to sell (produce) at different prices.

Front

Diminishing Marginal Utility

Back

The more you buy of any good, the less satisfaction from each new unit.

Front

Substitutes

Back

Goods used in place of one another

Front

Complements

Back

Two goods bought and used together.

Front

Normal goods

Back

As income increases, demand increases

Front

Inferior goods

Back

As income increases, demand decreases.

Front

Input Costs

Back

Cost of all resources a seller uses to produce a good.

Front

Subsidies

Back

A government payment that supports a business or market

Front

Equilibrium

Back

Quantity demanded = quantity supplied