| A | B |
|---|
| MARKET | AN ARRANGEMENT THAT ALLOWS BUYERS AND SELLERS TO EXCHANGE THINGS |
| DEMAND | THE COMBINATION OF GOODS AND SERVICES THAT CONSUMERS ARE WILLING AND ABLE TO BUY AT A SPECIFIED PRICE |
| CONCEPTUAL | A GENERAL IDEA OR UNDERSTANDING THAT ONLY EXISTS IN THE MIND |
| QUANTITY DEMANDED | MOVEMENT ALONG A DEMAND CURVE THAT IS IN RESPONSE TO A CHANGE IN PRICE |
| DEMAND CURVE | A GRAPH REPRESENTING ALL THE DEMAND IN A MARKET ASSUMING CETERIS PARIBUS |
| CETERIS PARIBUS | ALL THINGS EQUAL EXCEPT FOR PRICE |
| LAW OF DEMAND | WHEN THE PRICE OF A GOOD IS LOW CONSUMERS WILL DEMAND MORE OF IT, WHEN THE PRICE OF A GOOD IS HIGH CONSUMERS WILL DEMAND LESS OF IT |
| PREDICTABILITY | TO MAKE KNOWN IN ADVANCE |
| ELASTICITY OF DEMAND | A MEASURE OF HOW RESPONSIVE CONSUMERS ARE TO CHANGES IN PRICE |
| ELASTIC DEMAND | DEMAND FOR A GOOD OR SERVICE THAT IS VERY RESPONSIVE TO PRICE |
| INELASTIC DEMAND | DEMAND FOR A GOOD OR SERVICE THAT IS NOT RESPONSIVE TO PRICE |
| UNITARY ELASTIC | DEMAND FOR A GOOD OR SERVICE IS PROPORTIONAL TO THE CHANGE IN PRICE |
| SUBSTITUTE GOOD | A GOOD OR SERVICE THAT CAN BE SWITCHED OUT FOR ANOTHER ALMOST IDENTICAL GOOD OR SERVICE |
| COMPLEMENTARY GOOD | A GOOD OR SERVICE THAT IS ASSOCIATED WITH THE CONSUMPTION OF ANOTHER GOOD OR SERVICE |
| INCREASE IN DEMAND | MOVEMENT OF AN ENTIRE DEMAND CURVE TO THE RIGHT |
| DECREASE IN DEMAND | MOVEMENT OF AN ENTIRE DEMAND CURVE TO THE LEFT |
| SUBSTITUTION EFFECT | THE TENDENCY OF CONSUMERS TO SUBSTITUTE SIMILAR LOWER PRICED ALTERNATIVES TO ITS HIGHER PRICED VERSION |
| CONSUMER INCOME EFFECT | THE TENDENCY OF CONSUMERS TO PURCHASE MORE PRODUCTS AS INCOME LEVELS RISE AND CORRESPONDINGLY PURCHASE LESS OF A PRODUCT AS INCOMES DECREASE |
| NORMAL GOOD | A GOOD OR SERVICE THAT CONSUMERS PURCHASE MORE OF AS INCOME LEVELS RISE, THE COROLLARY IS ALSO TRUE |
| INFERIOR GOOD | A GOOD OR SERVICE THAT CONSUMERS WILL PURCHASE LESS OF AS INCOMES RISE, THE COROLLARY IS ALSO TRUE |
| SHORTAGE | A LIMIT IN THE QUANTITY OF GOODS OR SERVICES AVAILABLE AS A RESULT OF EXTERNAL MARKET FACTORS |
