AP课程经济学名词解释.docxVIP

AP课程经济学名词解释 AP课程经济学名词解释 AP课程经济学名词解释 据360教育集团介绍：给大家分享的AP课程微观经济学名词解释，希望对各位有所帮助。 Please highlight critical terms; =not important for exam but you should know Chapter Two DemandSupply utility- the benefit, happiness, or satisfaction expected from a choice or option. marginal utility -the benefit (satisfaction) received or anticipated when an additional amount of an activity is undertaken; usually used with marginal opportunity cost. Usually falls as quantity of a particular activity rises, according to the Law of Diminishing Returns. law of diminishing marginal utility- an example of the law of diminishing returns (see Chapter Two), which says that as larger quantities of a good are consumed, the value of an additional or marginal amount will fall. In other words, marginal utility declines as consumption goes up. This is one basis for the law of demand. surplus- a greater quantity supplied than is demanded, indication of price above equilibrium; also called excess supply. demand-the relationship between the price and quantity demanded of a good, all else being held constant; demand is based on marginal utility. *quantity demanded-the amount of a good that buyers wish to buy at a particular price. law of demand - the rule that says that the demand relationship is an inverse or negative one (as price rises, quantity demanded falls, all else being held constant) elastic demand- when buyers are very response to changes in price, due to the availability of substitutes. inelastic demand- when buyers do not respond to changes in price, due to lack of substitutes. quantity supplied-the amount of a good that sellers wish to sell at a particular price. Giffen goods-good for which there is an upward-sloping demand curve(theoretical) Equilibrium pirce- price at which quantity supplied equals quantity deanded *supply-the relationship between the price and quantity supplied of a good, all else being held constant; the relationship between t