Demand

Decrease in Demand

a decrease in the quantity demanded of a good, service, or resource at every price; graphically represented by a leftward shift of the demand curve

Normal Good

a good for which there is a direct relationship between the demand for the good and income; an increase in income increases demand, and a decrease in income decreases demand

Inferior Good

a good for which there is an inverse relationship between the demand for the good and income; an increase in income decreases demand, and a decrease in income increases demand

Demand Curve

a graphical representation of the relationship between the price of a good, service, or resource and the quantity that individuals and firms are willing and able to buy, all else held constant

Law of Demand

a principle in economics that states that as the price of a good, service, or resource rises, the quantity demanded will fall, and vice versa, all else held constant

Demand Schedule

a tabular representation of the relationship between the price of a good, service, or resource and the quantity that individuals and firms are willing and able to buy, all else held constant

Good

a tangible product that consumers, firms, or governments wish to purchase

Increase in Demand

an increase in the quantity demanded of a good, service, or resource at every price; graphically represented by a rightward shift of the demand curve

Individual Demand

an individual's demand for a specific product

Service

an intangible product or action that consumers, firms, or governments wish to purchase

Market

any place where, or mechanism by which, buyers and sellers interact to trade goods, services, or resources

Substitutes

goods, service, or resources that are views as replacements for one another

Complements

goods, services, or resources that used or consumed with one another

Formal Markets

highly structured markets

Informal Markets

less structured markets with fewer rules

Buyers

market participants who seek to obtain goods, services, and resources

Expectations

the anticipation by individuals and firms of costs and benefits that lie in the future

Change in Quantity Demanded

the change in the quantity of a good, service, or resource that consumers, firms, and governments are willing and able to buy due to a change in its price

Income Effect

the effect that a change in the price of a good, service, or resource has on the purchasing power of income. For example, when prices decreased the purchasing power of income increases and consumers are able to purchase more

Substitution Effect

the effect that a change in the price of a good, service, or resources has on the demand of another. For example, an increase in the price of one good will increase the demand for its substitutes, and vice versa

Diminishing Marginal Utility

the negative relationship between the quantity of a good, service, or resource and the marginal utility obtained from each additional unit consumed in a given period of time

Market Demand

the overall or total demand for a good, service, or resource; represents the summation of individual demand curves, whether they represent individuals, communities, states, or nations

Tastes and Preferences

the perception of the desirability associated with consuming a good, service, or resource

Quantity Demanded

the quantity of a good, service, or resource that consumers, firms, and governments are willing and able to buy, all else held constant