(See related pages)
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| allocative efficiency | The apportionment of resources among firms and industries to produce the goods most wanted by society. (See page(s) p. 71) |
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| change in demand | A change in the quantity demanded of a good or service at every price. (See page(s) p. 63) |
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| change in quantity demanded | A movement from one point to another on a demand curve. (See page(s) p. 63) |
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| change in quantity supplied | A movement from one point to another on a fixed supply curve. (See page(s) p. 67) |
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| change in supply | A change in the quantity supplied of a good or service at every price; a shift of the supply curve to the left or right. (See page(s) p. 67) |
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| complementary goods | Products and services that are used together. (See page(s) p. 62) |
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| demand | A schedule or curve that shows the various amounts of a product that consumers are willing and able to purchase at each of a series of possible prices during a specified period of time. (See page(s) p. 57) |
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| demand curve | A curve illustrating the inverse (negative) relationship between the quantity demanded of a good or service and its price, other things equal. (See page(s) p. 59) |
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| determinants of demand | Factors other than its price that determine the quantities demanded of a good or service. (See page(s) p. 59) |
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| determinants of supply | Factors other than its price that determine the quantities supplied of a good or service. (See page(s) p. 65) |
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| diminishing marginal utility | As a consumer increases the consumption of a good or service, the marginal utility obtained from each additional unit of the good or service decreases. (See page(s) p. 58) |
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| equilibrium price | The price in a competitive market at which the quantity demanded and the quantity supplied are equal. (See page(s) p. 68) |
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| equilibrium quantity | The quantity demanded and supplied at the equilibrium price in a competitive market. (See page(s) p. 68) |
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| income effect | A change in the price of a product changes a consumer's real income (purchasing power) and thus the quantity of the product purchased. (See page(s) p. 58) |
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| inferior good | A good or service whose consumption declines as income rises (and conversely), price remaining constant. (See page(s) p. 61) |
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| law of demand | All else equal, as price falls, the quantity demanded rises, and vice versa. (See page(s) p. 57) |
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| law of supply | The principle that, other things equal, an increase in the price of a product will increase the quantity of it supplied; and conversely for a price decrease. (See page(s) p. 64) |
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| normal good | A good or service whose consumption rises when income increases and falls when income decreases, price remaining constant. (See page(s) p. 61) |
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| price ceiling | A legally established maximum price for a good or service. (See page(s) p. 74) |
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| price floor | A legally determined price above the equilibrium price. (See page(s) p. 76) |
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| productive efficiency | The production of a good in the least costly way. (See page(s) p. 71) |
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| shortage | The amount by which the quantity demanded of a product exceeds the quantity supplied at a particular (below-equilibrium) price. (See page(s) p. 70) |
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| substitute goods | Products or services that can be used in place of each other. (See page(s) p. 62) |
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| substitution effect | (1) A change in the price of a consumer good changes the relative expensiveness of that good and hence changes the consumer's willingness to buy it rather than other goods. (2) A firm will purchase more of an input whose relative price has declined and use less of an input whose relative price has increased. (See page(s) p. 58) |
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| supply | A schedule or curve that shows the amounts of a product that producers are willing and able to make available for sale at each of a series of possible prices during a specific period. (See page(s) p. 64) |
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| supply curve | A curve illustrating the positive (direct) relationship between the quantity supplied of a good or service and its price, other things equal. (See page(s) p. 64) |
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| surplus | The amount by which the quantity supplied of a product exceeds the quantity demanded at a specific (above-equilibrium) price. (See page(s) p. 70) |