economics pt.3

• DEMAND The quantity of a good that consumers are willing and able to purchase at various prices during a given time.
• LAW OF DEMAND - WHEN THE PRICE INCREASE THEN THE DEMAND DECREASE/FALL
• QUANTITY - The amount or number of a material or immaterial thing not usually estimated by spatial measurement.
• QUALITY The degree to which a set of inherent characteristics fulfils requirements
• INDIVIDUAL DEMAND - The relationship between the quantities of goods demanded by a single buyer and their price.
• MARKET DEMAND The relationship between the total quantities of a good

  demanded by all consumers in the market and its price.
• SUBSTITUTE GOODS Goods that can be used in place of other goods.
• COMPLEMENTARY GOODS Goods that are used together with another good
• CHANGE OF DEMAND Shift in consumer desire to

  purchase a particular good or service, irrespective of a variation in its price
• SUPPLY The amount of a resource that firms, producers, laborers, providers of financial assets, or other economic agents are willing and able to provide to the marketplace or to an individual.
• LAW OF SUPPLIES - AS THE PRICE INCREASE QUANTITY SUPPLIES INCREASE
• SHIFT IN SUPPLY Any change in an underlying determinant of supply, such as a change in the availability factors or changes in weather, taxes, and subsidies, will shift the supply curve to the left or right.
• EQUILIBRIUM When the buyers and sellers transact in a market they agree on the price of the commodity and the amount to be sold and bought. This agree price is called equilibrium price.
• EQUILIBRIUM MARKET It is achieved at the price of which quantities demanded and supplied are equal.
• DISEQUILIBRIUM It happens when there are disagreements among buyers and seller on the price and quantity
• SHORTAGE The quantity demanded of a good, service, or resource is greater than quantity supplied.
• SURPLUS When the quantity supplied of a good, service, or resource is greater than the quantity demanded.
• PRICE CEILING A maximum price that sellers may change for a good usually set by government.
• PRICE FLOOR Is a price above equilibrium price that the buyers have to pay.