Demand & Supply (Definitions)

• Market

  Is an effective arrangement where consumers and producers exchange goods and services and determine price.
• Value

  The power of a commodity which enables it to be exchanged with other commodities.
• Price

  A value of a commodity expressed in terms of currency.
• Demand

  The desire or willingness and ability to pay for goods and services at a given price.
• Consumers

  The people who are willing to buy goods and services at a given prive over a given period of time.
• Producers

  The people who are willing to sell goods and services at a given price over a given period of time.
• Effective demand

  is when demand is backed up by the purchasing power.
• Individual demand

  Is the amount of a product an individual is willing and able to buy a product at different prices
• Market demand

  Is the total demand for products at different prices
• Law of demand

  Ceteris Paribus, other things being equal when prices are higher ,the demand is lower and when the prices are lower, the demand is high.