| A | B |
|---|
| Demand | The ability and willingness of people to buy products or services |
| Law of Demand | As the price of an item increases the demand for that item will decrease (if all other factors remain the same.) |
| Income Effect | as prices go down people can buy more of a product without spending more money |
| Substitution Effect | the tendency for consumers to substitute lower price items for more expensive items |
| Principle of Diminishing Utility | a person obtains more and more units of an item, he/she will obtain less and less satisfaction |
| Utility | The power that a good or service has to satisfy a want |
| Supply | the ability and willingness of sellers to make things available for sale |
| Law of Supply | As the price of an item rises the quantity supplied by suppliers will rise (as long as all other factors remain the same.) |
| Law of Diminishing Return | How production would increase that otherwise be normally expected, actually starts to progressively decrease the more of the factor is added. |
| Equilibrium Price | The point where supply and demand meet |
| Elastic Demand | As price and quantity change, price is subject to many changes |
| Inelastic Demand | Even if quantity and price change, price stays relatively the same |
| Market | A place where good and services are exchanged for something, generally money |
| Dividend | A small portion of the prophet given to the shareholders |
| Volume | Amount of stocks/shares traded |
| NASDAQ | Stock exchange for newer/technology companies |
| Dow Jones | Stock Exchange for older/industrial type companies |
| Stocks | partial ownership of a corporation- called shares |
| Mutual Funds | a collection of stocks that are sold together- diverse to make the fund less risky |
