nature and functions of product markets

change in quantity demanded

a movement of the equilibrium along a stationary demand curve

law of supply

as price increases, the quantity of a good supplied in a given period will increase, other things being equal

law of demand

as price of a good falls, the quantity of that good demanded by consumers falls

demand curve

displays relationship between price and the quantity demanded of a good within a given period

market supply curve

indicates the total quantities of a good that suppliers are willing and able to provide at various prices during a given period of time

marginal cost

the additional cost of producing another unit

law of diminishing marginal utility

the decreasing satisfaction gained from additional units of a good consumed in a given period

equilibrium point

the point of intersection between the two curves