| A | B |
|---|
| DEMAND | The quantity of a good or service consumers are willing and able to buy at a particular price |
| SUPPLY | The quantity of a good or service producers are willing and able to sell at a particular price |
| LAW OF SUPPLY | States that as price increase the quantity supplied increases |
| LAW OF DEMAND | States that as price increases the quantity demanded decreases |
| EXPANSION OF DEMAND | An increase in the quantity demanded due to a fall in price |
| CONTRACTION OF DEMAND | A decrease in the quantity demanded as price rises |
| EXPANSION OF SUPPLY | An increase in supply due to a rise in price |
| CONTRACTION OF SUPPLY | A decrease in the quantity supplied as prices fall |
| ELASTICITY OF DEMAND | The responsiveness of demand to a change in price |
| ELASTIC DEMAND | A product whose demand is price sensitive |
| INELASTIC DEMAND | A product whose demand is not price sensitive |
| SUBSTITUTE | A product that satisfies the same wants or need as another product |
| EQUILIBRIUM PRICE | The price at which demand is equal to supply |
| INCREASE IN DEMAND | An increase in the quantity demanded at all price levels due to a change in a non-price factor such as tastes |
| DECREASE IN DEMAND | A decrease in the quantity demanded at all price levels due to a change in a non-price factor such as tastes |
| INCREASE IN SUPPLY | An increase in the quantity supplied at all price levels due to a change in a non-price factor such as technology. |
| DECREASE IN SUPPLY | A decrease in the quantity supplied at all price levels due to a change in a non-price factor such as higher labour costs. |
| SHORTAGE | A situation in which at a particular price, demand exceeds supply |
| SURPLUS | A siuation in which, at a particular price, supply exceeds demand |
| COMPLEMENTARY GOOD | A good or service which is required by a consumer so that they can use another good or service. |
