| A | B |
|---|
| monopoly | a sole supplier of a product with no close substitutes |
| oligopoly | a market structure with a small number of firms whose behaviors is interdependent |
| cartel | a group of firms that agree to coordinate and price decisions to maximize group profits by behaving as monopolies |
| perfect competition | many buyes and sellers so that no individual buyer or seller can influence the price |
| law of supply | quanitity supplies is usually directly realtived to its price |
| elasticity of supply | the percentage of change in quantity supplied divided by the percentage change in price |
| elasticity of demand | measures the consumer responsiveness to the price change |
| demand | how much of a product consumers are both willing and able to buy at each possible price during a given period |
| demand - substitution effect | people will substitute one product for another if the cost is too high |
| demand - income effect | the more money you get, the more you are willing to pay for items which increases demand |
| diminishing marginal utility | themore of a good an individual consumes per period, the smaller the enjoyrmen of each additional unit consumed |
| market demand | the number of things people would be willing and able to buy at each price |
