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A voluntary meeting of buyers and sellers with exchange taking place.
Market
The quantity of a good or service that consumers are willing and able to buy at given prices in a given period of time.
Demand
The quantity of a good or service that producers are willing and able to sell at given prices in a given period of time.
Supply
Markets in which the large number of buyers and sellers possess good market information and can easily enter or leave the market.
Comptetitive Markets
The price at which planned.
Ruling Market Price: (also known as equilibrium price)
The desire for a good or service backed by an ability to pay.
Effective Demand
The quantity of a good or service that all the consumers in a market are willing and able to buy at different market prices.
Market Demand
The quantity of a good or service that a particular consumer or individual is willing and able to buy at different market prices.
Individual Demand
A determinant of demand, other than the good’s own price, that fixes the position of the demand curve.
Condition of Demand
Alternative goods that could be used for the same purpose.
Substitute Goods
When two goods are complements they experience joint demand.
Complementary Goods
A rightward shift of the demand curve.
Increase in Demand
A leftward shift of the demand curve.
Decrease in Demand
The proportionate responsiveness of a second variable to an initial change in the first variable.
Elasticity
Measure the extent to which the demand for a good changes in response to a change in the price of that good
Price elasticity of demand
percentage change in quantity demanded
percentage change in price
price elasticity of demand
Measures the extent to which the demand for a good changes in response to a change in income
Income elasticity of demand
percentage change in quantity demanded
percentage change in income
income elasticity of demand
Measure the extent to which demand for a good changes in response to a change in price of another good
Cross Elasticity of Demanded
percentage change in quantity of A demanded
percentage change in price of B
cross elasticity of demand
The time period in which one factor of production is fixed and cannot be varied
Short Run
The time period in which no factors of production are fixed and all factors of production can be varied
Long Run
The quantity of a good or service that all the firms in a market plan to sell at given prices in a given period of time
Market Supply
The difference between total sales revenue and total cost of production
Profit
All the money received by a firm from selling its total output
Total Revenue
A determinate of supply, other than the good’s own price, that fixes the position of the supply curve.
Condition of Supply
A rightward shift of the supply curve
Increase in supply
A leftward of the supply curve
Decrease in Supply
Measure the extent to which the supply if a good changes in response to a change in the price of that good.
Price elasticity of supply
percentage change in quantity supplied
percentage change in price
Price elasticity of supply
A state of rest or balance between opposing forces (price and quantity)
Equilibrium
A situation in which opposing forces are out of balance
Disequilibrium
When planned demand equals planned supply, where the demand curve crosses the supply curve
Market Equilibrium
Exists at any price other than the equilibrium price
Market Disequilibrium
When firms wish to sell more than consumers wish to buy, the price is above the equilibrium price
Excess Supply
When consumers wish to buy more that firms wish to sell, the price is below the equilibrium price.
Excess Demand
When one good is produced, another good is also produced from the same raw materials, perhaps as a by product (beer and marmite)
Joint Supply
When a good is viewed by consumers as an alternative for another good (goods are substitutes)
Competitive Demand
Demand for a good which has more than one use, meaning that an increase in demand for one use of the good reduces the supply of the good for an alternative use. (Competing Supply)
Composite Demand
Demand for a good or factor of production, wanted not for its own sake but as a consequence of the demand for something else.
Derived Demand
Note 
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