Supply and Demand

Law of Demand

The law of demand is a fundamental principle in economics that states that, all else being equal (ceteris paribus), as the price of a good decreases, the quantity demanded of that good increases. Conversely, as the price increases, the quantity demanded decreases. This relationship is typically represented by a downward-sloping demand curve.

Marginal utility

the added satisfaction a consumer gets from having one more unit of a good or service

Post hoc fallacy

a logical fallacy that occurs when someone assumes that one event caused another simply because it happened before the other

Economic Growth

Economic growth refers to the increase in the output of goods and services in an economy over time. It is typically measured by the increase in a country's Gross Domestic Product (GDP). Economic growth is driven by factors such as increased production, technological innovation, and improvements in the standard of living. When an economy grows, it can produce more goods and services, improve infrastructure, and enhance the overall quality of life for its citizens

Economic Equity

refers to fairness in the distribution of wealth and resources within a society. While important, it is not directly related to the production of goods, technological advancement, or improving living standards

Full Employment

This goal refers to achieving a situation where everyone who wants a job can find one. While full employment can contribute to economic growth, the question specifically focuses on production and technology, which are more directly related to growth rather than employment levels.

Economic Efficiency

Economic efficiency involves making the best use of resources to maximize output and minimize waste. While efficiency is important for growth, the focus of the question is on the broader concept of increasing output and improving living standards, which aligns more with economic growth

Demand

quantity of a good or service that consumers are willing and able to purchase at various prices over a specific period of time.

Supply

the quantity of a good or service that producers are willing and able to sell at various prices over a specific period of time.

Price

amount of money required to purchase a good or service

Quantity

amount of a good or service that is bought or sold in the market at a given price.

Market Price

price at which a good or service is bought and sold in a market. It is the price at which the quantity demanded by consumers equals the quantity supplied by producers, resulting in an equilibrium.