social science second quarter

Demand

The consumer side of the market.

Purchases

Considered as money votes.

Law of demand

General behavior of consumers.

Ceteris paribus

Assuming all other things are constant.

Clearance sale

Traders would sell products at a reduced price.

Demand schedule

A table representing demand.

Demand curve

A graphical presentation of demand.

Individual demand

Demand by a single buyer.

Market demand

Demand of all consumers.

Canvassing prices

Buyers are able to compare prices.

Utility theory

The use of the product determines its real worth.

Marginal utility

Satisfaction derived from a product consumed.

Util

A hypothetical unit of utility.

Change in quantity demanded

Occurs when price is the only determinant of demand.

Change in demand

Price is constant but demand changes.

Change in income

More income means a greater capacity to meet economic wants.

Population

More people means more goods and services provide.

Advertisement

The most influential factor affecting demand.

Change in the price of substitute products

Alternatives for each other.

Change in the price of complementary products

Products used together.

Speculation

Occurs when consumers anticipate a price increase or supply running out.

Supply

The seller's side of the market.

Cost of production

Factors affecting supply and business profit.

Supplier

The seller of the product.

Supplies

Either wholesale or retailers.

Wholesale

Bulk buying.

Retailers

Buy from wholesalers and sell to consumers.

Law of supply

Sellers prefer a high price to earn more profit.

Supply schedule

A table representing supply.

Supply curve

A graphical representation of supply.

Individual supply

Supply by a single seller.

Market supply

Supply from two or more sellers.

Upward slope

Indicates a positive or directly proportional relationship between price and quantity supplied.

Change in quantity supplied

Change due to price.

Change in supply

Supply changes while price is constant.

Productivity

Measured by comparing the number of outputs produced; reduces cost of production.

Marginal cost

The increment in total cost.

Break Even point

Where profit is zero.

Diminishing returns

The opposite of the concept of productivity.

Total revenue

Total product multiplied by the unit price.

Cost

Refers to the expenditures.

Price

Market value of a commodity; the amount paid between buyer and seller.

Market price

The price acceptable to both buyers and sellers.

Market surplus

Quantity supplied is greater than quantity demanded.

Market shortage

Quantity supplied is less than quantity demanded.

Equilibrium

Where quantity supplied and quantity demanded are equal.

Inflation

Increase in the level of price of goods and services.

Demand pull inflation

Caused by excessive demand that supply cannot meet.

Cost-push inflation

Inflation due to increased costs of production.

Creeping inflation

Inflation of three percent or less.

Walking inflation

Inflation between three and ten percent.

Galloping inflation

Inflation of ten percent or more.

Hyperinflation

Inflation of fifty percent or more.

Elasticity

Measures the responsiveness of quantity demanded or supplied.

Price ceiling

The highest allowable price of a product.

Price floor

The lowest allowable price of a product.

Daily minimum wage

Lowest salary paid per day.