Economics

Ceteris paribus condition

("all else equal") is the requirement that when analyzing the relationship between two variables -such as price and quantity demanded- other variables must be held constant.

Demand curve

A curve that shows the relationship between the price of a product and the quantity of the product demanded.

Demand Schedule

A table showing the relationship between the price of a product and the quantity of the product demanded.

Economics is a social science because:

It considers human behavior- particularly decision-making behavior. It is based on studying the actions of individuals.

Quantity demanded

The amount of a good or service that a consumer is willing and able to purchase at a given price.

Substitution effect

The change in the quantity demanded of a good that results from a change in price, making the good more or less expensive relative to the other goods that are substitutes.

Income effect

The change in the quantity demanded of a good that results from the effect in the good's price on consumers' purchasing power.

Market demand

The demand by all the consumers of a given good or service.

Law of demand

The rule that, holding everything else constant, when the price of a product falls, the quantity demanded of the product will increase, and when the price of a product rises, the quantity demanded of the product will decrease.

Microeconomics

The study of households and firms make choices, how they interact in markets, and how the government attempts to influence their choices.

Macroeconomics

The study of the economy as a whole, including topics such as inflation, unemployment, and economic growth.