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Goods that are consumed together; a decrease in the price of one can lead to an increase in demand for the other.

A graph showing how the quantity supplied of a good changes at different price levels.

Include consumer income, preferences, prices of related goods, expectations of future prices and income, and number of consumers.

A state in which market supply and demand are balanced and quantities supplied and demanded are equal at the price level.

The loss of economic efficiency that occurs when the marginal benefit does not equal the marginal cost and resources are not used optimally.

A Latin phrase meaning 'all other things being equal', often used to isolate the relationship between two variables.

A graph showing how the quantity demanded of a commodity changes as its price varies.

When factors other than price change, the whole supply curve shifts right for an increase or left for a decrease in supply.

Occurs when the quantity demanded of a good exceeds the quantity supplied at the current price.

The difference between the maximum price consumers are willing to pay for a good and the market price they actually pay.

Occurs when the quantity supplied of a good exceeds the quantity demanded at a given price.

The difference between the minimum price producers are willing to accept for a good and the market price they actually receive.

As the price of a good increases, consumer demand for the good generally decreases (and vice versa).

The cost of producing one more unit of a good, which can vary with the level of production.

When factors other than price change, the whole demand curve shifts right for an increase or left for a decrease in demand.

The additional satisfaction or utility that a person receives from consuming an additional unit of a good or service.

A measure of the responsiveness of demand for one good to a change in the price of another good.

The additional income from selling one more unit of a good; sometimes equal to the price of the good.

The process or strategy of choosing the most satisfying option among different consumer choices, subject to the consumer's income constraints.

A measure of the responsiveness of the quantity demanded to a change in price, calculated as the percentage change in quantity demanded divided by the percentage change in price.

A legal maximum price set for a good, above which it cannot be sold; intended to protect consumers.

The next best alternative forgone when a decision is made to use resources for a particular purpose.

Include production technology, input prices, taxes and subsidies, expectations of future prices, and number of suppliers.

A measure of the responsiveness of quantity supplied to a change in price of the good.

The practice of selling the same product to different buyers at different prices based on their willingness to pay, in a way that maximizes seller revenues.

As the price of a good increases, the quantity supplied of the good also generally increases (and vice versa).

Goods for which demand decreases as consumer income rises, opposite of normal goods.

Goods for which demand increases as consumer income rises.

The impact of a change in the price of a good on consumers' purchasing power and consequently their quantity demanded for the good.

The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

The market price where the quantity of goods supplied is equal to the quantity of goods demanded.

A shift in a curve represents a change in supply or demand not caused by price, while a movement along the curve represents a change in quantity supplied or demanded due to a price change.

Goods that can be used in place of another; an increase in the price of one leads to an increase in demand for the other.

The impact of a change in the price of a good on its relative price and the willingness of consumers to switch to or from substitutes.