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demand
Consumer willingness and ability to buy products
price
The amount of money exchanged for a good or service
quantity demanded
total number of units demanded at a given price
law of demand
all else held equal, if the price rises/falls, quantity demanded will rise/fall
demand schedule
a table that shows the relationship between the price of a good and the quantity demanded
demand curve
a graph of the relationship between the price of a good and the quantity demanded
consumer surplus
difference between what buyers are willing to pay and the price; 1/2b*h
producer surplus
difference between what the price the seller gets and what price they would produce at
factors that affect demand
income, normal vs inferior goods, tastes and preference, changes in population, price of related goods, substitutes vs complements
ceteris paribus assumption
other things being equal; we're only looking at the relationship between price and quantity in a single demand curve
normal good
a good that consumers demand more of when their incomes increase
inferior good
a good that consumers demand less of when their incomes increase
Note 
Flashcard (20)