Supply and Demand
Market: A place or service that enables buyers and sellers to exchange goods and services. For e.g.: the cold storage where consumers buy goods and get services from the officials there.
Demand: the amount of a product that people are willing and able to purchase at each possible price during a given period of time, ceteris paribus. For example, the Sony PlayStation 2 was so popular that people were willing to buy as it was cheaper than Xbox 360.So its demand was high.
Quantity Demanded: The amounts of a product that people are willing and able to purchase at a specific price. Eg: If the local Starbucks lowers their price of a tall coffee from $1.75 to $1.65, the quantity demanded will rise from 45 coffees an hour to 48 coffees an hour.
Law of Demand: The amount of a good or service the people are willing to purchase decreases as the price goes up, ceteris paribus. if the price of pizza increases people would buy 1 instead of two.
Income Effect: The effect of a change in price on quantity demanded due to a change in income. Eg: if one buys two donuts for $1 but suddenly one day the prices drops to 25 cents each then he would buy four.
Substitution Effect: The effect of a change in price on quantity demanded due to consumers switching from one good to another. Eg: If price of strawberries goes up then a baker uses cherries for his cakes that are cheaper but inferior.
Determinants of Demand: Factors other than price that influence demand--income, tastes, price of related goods, expectations, numbers of buyers.
Demand Schedule: A table of list of the prices and the corresponding quantities demanded of a particular good or service
Demand Curve: A graph of a demand schedule that measures price on the vertical axis and quantity demanded on the horizontal axis.
Normal Good: Goods for which demand increases as income increases. Eg as one gets promoted...