market, quantity demand, demand schedule Flashcards
It is the interaction between
buyers and sellers of trading
or exchange.
market
It is the market for goods
and services in the market.
goods market
is the demand and
supply for labor
labor market
It is a market where trading of
securities occurs
financial market
tangible good that can
be bought, sold or
exchanged for product with
a similar value.
commodities
total number of units purchased at a given price.
quantity demanded
table that shows the quantity
demanded of a good or service at different price levels
demand schedule
Latin phrase which
means “ all things being
equal”
ceteris paribus
graphical illustration of the
demand schedule with price
measured on the vertical y axis
and quantity on horizontal x
axis
demand curve
value of currency expressed in
terms of the amount of goods or services that one unit of money can buy
purchasing power
shows how the quantity
demanded of a good depends
on its determinants.
demand function
People buy more goods and services when their income increases, but will buy less if their income decreases.
income
More people means more
demand for goods and
services, Conversely less
population less demand
for goods and services.
population
Demand for goods and services
increases when people like or
prefer them.
taste and preference
When people expect the prices
of goods especially basic
commodities like rice, soap,
cooking oil or sugar to increase
tomorrow or next week. They
will buy more goods.
price expectations
When the price of goods
increases people tend to buy
substitute.
price of related goods
When the price of goods increases people tend to buy substitute.
substitute goods
Generally consumed or used
together.
complementary goods
A “normal good” is a good where, when an individual’s income rises, they buy more of that good.
normal goods
An “inferior good” is a good where, when the individual’s income rises they buy less of that good.
inferior goods
An increase in demand more
than the proportionate increase
in income.
luxury goods
