3.8 Key Terms
Key Terms
The demand curve shifts from its current position.
A movement along a demand curve that results from a change in price.
A movement along a supply curve that results from a change in price
The supply curve shifts from its current position
Both goods A and B are consumed together
Consumption of the goods decreases (increases) when income increases (decreases)
Such a movement is called a change in quantity supplied.
Consumption of the goods increases (decreases) when income increases (decreases)
This is the amount by which the quantity demanded exceeds the quantity supplied at the current price. A shortage occurs only if the current price is lower than the equilibrium price
One can consume either good A or good B
Is the amount by which the quantity supplied exceeds the quantity demanded at the current price. A surplus occurs only if the current price exceeds the equilibrium price. (3.5)
