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demand
the amount of good or service buyers are willing and able to buy at different prices during a given time.
law of demand
when price goes up, quantity demand goes down
demand curve
negative slope, points represent what the demand will be at various prices
market demand
adding up all the demand in one market
demand schedule
a table that shows how many of a certain product people want to buy at different prices
diminishing marginal utility
the more you have of something, the less you value each additional unit of that thing. ex: too many workers
consumer income
the money people earn or receive
taste change
preferences that change over time
expectations change
you start thinking something different will happen in the future
complementary goods
things that go together because they enhance each other’s usefulness. ex: pb&j
population change (# of consumers)
variations in the total number of people in a specific area or market who might buy goods and services
substitutes
products or goods that can be used in place of each other to satisfy a similar need or want. ex: pepsi vs coke
substitution effect
the idea that when the price of something goes up, people tend to buy less of that thing and more of a similar thing that costs less
income effect
changes in your income can affect the things you buy
normal goods
products that people buy more of when they have more money and buy less of when they have less money. ex: clothes
inferior good
products that people tend to buy more of when they have less money. ex: fast food
neutral good
elasticity
how sensitive the quantity of something is to changes in its price, more substitutes ex: plane tickets
inelasticity
a change in price doesn't result in a significant change in the quantity that people are willing to buy, NOT sensitive. ex: epi-pen
law of supply
demand/supply curve shift left
decrease
demand/supply curve shift right
increase
change in quantity demand,supply
movement along the curve or from one point to another, in response to a change in the price of a product
demand (in terms of the curve)
the whole curve
quantity demanded (in terms of the curve)
one point on the curve, # of units purchased at a specific price
law of supply
as price goes up, quantity supplied goes up
change in quantity supplied
price going up=more quantity, up; price going down, less quantity
market supply curve
the demand and supply curve
law of diminishing returns
when you keep adding more of something, until it’s not beneficial anymore
supply elasticity
measure of how much producers can adjust the quantity of a product they make in response to changes in its price
elastic supply
a small change in price leads to a large change in quantity supplied
inelastic supply
a change in price results in only a small change in the quantity supplied
unit elastic
a small change in price causes an equal change in the amount people buy or sell
equilibrium
where quantity demand equals quantity supplied
shortage
demand has outpaced supply
ceiling
a government imposed limit on the price of a good or service to prevent a shortage, the limit is how low, near bottom of market curve
surplus
the price faced by consumers and producers is held above the equilibrium market price,
floor
government-imposed minimum price that must be charged for a particular good or service to prevent surplus, near the top of market curve
Note 
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