demand

• demand: the willingness and ability to purchase a good or service at a given price in a given time period
• Law of demand: for most products the quantity demanded varies inversely with its price
• individual demand: the demand for a good or service by an indvidual consumer
• shift of the demand curve: a complete movement of the demand curve to the left or right
• movement along the demand curve: when the price changes, leading to a movement up or down the curve
• tax: a compulsory payment to the government
• subsidy: an amount of money the government gives directly to firms to encourage production and consumption