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