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
