definitions

• complementary goods - Where changes in demand for one good mirror the change in demand for another.
• Demand - the amount of a product or service that customers are willing and able to pay for at a given time.
• demand curve - A line on a graph illustrating how the demand for a good changes with price.
• inferior goods goods that become less attractive to consumers as their income increases. In other words, the demand for these goods decreases as income rises. Examples of inferior goods include
• normal goods -  a good that experiences an increase in demand due to an increase in a consumer's income
• Substitute good - Goods that rival each other, an increase in the price of one good will lead to an increase in demand of the other.
• subsidy - when a government provides unfair financial assistance to its companies to produce or export goods at artificially low prices.
• supply - stock or amount of something supplied or available for use or purchase by the consumer
• supply curve - a diagram which will show how supply would change with other factors
• equilibrium price - when the supply of demand matches demand
• excess demand - when demand is greater than the equilibrium level of output, causing a fall in price
• excess supply - when the price of a good or service is too high and there is a surplus of supply
• total revenue - total cost = profit or loss

  the total amount of money that a company has or creates from selling
• price elasticity of demand - The responsiveness of demand to a change in the price of a product
• price inelastic demand - Inelastic demand is when the quantity demanded for a product remains the same regardless of whether or not the price for that product increases or decreases.
• directionally expenditure - expenditure that is directed towards a particular goal or purpose
• income elastic demand - demand for a good is inelastic when income rises demand rises by the same proportion as income
• income elasticity of demand - the responsiveness of demand to a change in income
• income inelastic demand - demand for a good is not affected by changes in income