Microeconomics

2. products that increase in value when the demand for relative products increases
6. of Demand a higher price leads to a lower quantity demanded, and a lower price leads to a higher quantity demanded
7. a market where the firm is the sole buyer of resources or supplies
8. cost additional cost of producing one additional unit
10. a product or service that can replace another product or service that makes little difference to the consumer
14. manufactured goods that can be used in the production process, including tools, equipment, building, and machinery
15. Advantage when a firm can produce a good using fewer resources per unit of output than another firm
18. advantage when a firm can produce a good at a lower opportunity cost than another firm
20. cost the value of the best alternative sacrificed as compared to what actually takes place

1. the condition that arises because wanted exceed the ability of resources to satisfy them
3. Utility the additional utility from the last unit
4. quantity supplied exceeds quantity demanded
5. efficiency MU/P=MU/P
9. a unit/ measurement of satisfaction
11. quantity demanded exceeds quantity supplied
12. floor the lowest price that can a consumer can pay for a product or service
13. ceiling the maximum amount that a seller can charge for a product or service
16. A market structure in which a small number of interdependent firms compete
17. of Supply as the price of a good or service increases, the quantity of that good or service will increase (and vice versa)
19. where buyers and sellers align to a point where neither group is better off changing their behavior