Economics Part II

meaning price changes have little effect on the quantity we buy

inelastic

meaning price changes greatly affect our purchase of them

elastic

ability and willingness to buy goods and services at alternative prices

Demand

is the maximum quantity that buyers are willing and able to buy at a specific price

Quantity demanded

demand given a time period

Demand Schedule

graph of demand schedule

Demand Curve

the quantity of a product demanded at a given period increases as its price decreases ceteris paribus (latin for all else being equal)

Law of Demand

increase in purchasing power as price of a product decreases

Income Effect

as price of a product Increases demand for substitutes product increases

Substitution Effect

an interaction of buyers and sellers; meeting together of people to buy and sell

Market

combination of all the demand of the consumers in the market

Market Demand