| A | B |
|---|
| factor market | Any place where factors of production (e.g., land, labor, capital) are bought and sold. |
| product market | Any place where finished goods and services (products) are bought and sold. |
| supply | The ability and willingness to sell (produce) specific quantities of a good at alternative prices in a given time period, ceteris paribus. |
| demand | The ability and willingness to buy specific quantities of a good at alternative prices in a given time period, ceteris paribus. |
| opportunity cost | The most desired goods or services that are forgone in order to obtain something else. |
| demand schedule | A table showing the quantities of a good a consumer is willing and able to but at alternative prices in a given time period, ceteris paribus. |
| demand curve | A curb describing the quantities of a good a consumer is willing and able to buy at alternative prices in a given time period, ceteris paribus. |
| law of demand | The quantity of a good demanded in a given time period increases as its price falls, ceteris paribus. |
| substitute goods | Goods that substitute for each other; when the price of good x rises, the demand for good y increases, ceteris paribus. |
| complementary goods | Goods frequently consumed in combination; when the price of good x rises, the demand for good y falls, ceteris paribus. |
| ceteris paribus | The assumption of nothing else changing. |
| shift in demand | A change in the quantity demanded at any (every) given price. |
| market demand | The total quantities of a good or service people are willing and able to buy at alternative prices in a given time period; the sum of individual demands. |
| market supply | The total quantities of a good that sellers are willing and able to sell at alternative prices in a given time period, ceteris paribus. |
| law of supply | The quantity of a good supplied in a given time period increases as its price increases, ceteris paribus. |
| equilibrium price | The price at which the quantity of a good demanded in a given time period equals the quantity supplied. |
| market mechanism | The use of market prices and sales to signal desired outputs (or resource allocations). |
| market surplus | The amount by which the quantity supplied exceeds the quantity demanded at a given price; excess supply. |
| market shortage | The amount by which the quantity demanded exceeds the quantity supplied at a given price; excess demand. |
| price ceiling | Upper limit imposed on the price of a good. |
