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Definition
| An economic system made up of smaller buliding blocks of individual markets for trading all the different goods and services used in a country. |
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| The rate at which the buyer and seller exchange money for a good or service. |
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| The market where workers sell time on the job in exchange for money. |
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| A market where buyers and sellers are geographically close to each other. |
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| A market where buyers and sellers can be in different parts of a country. |
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| A market where buyers and sellers can be located anywhere in the world. |
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| A business that operates in multiple countries. |
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| The typical price at which a good or service sells. |
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Definition
| A price intentionally set below the market price to stimulate purchases. |
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Definition
| A price that is determined on a case-by-case basis as a result of negotiation between individual buyers and sellers. |
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| A price set below the market price to reward buyers who purchase a large quantity of items. |
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| Advance purchase discount |
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Definition
| A reduced price given for buying in advance, so that prices differ according to when purchases are made. |
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Definition
| The amount of a good or service that a buyer is willing to purchase at a given price. |
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Definition
| The link between a buyer's quantity demanded and the price. |
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Definition
| A sum of the demand schedules for all the individual buyers in a market. |
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Definition
| A Latin phrase meaning "all other things equal". |
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Definition
| The tendency of quantity demanded to rise if the price falls, all other things being equal. |
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Definition
| Occurs when an additional unit of a good or service is offered at no cost to buyers. |
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Term
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Definition
| The point at which the value of additional consumption of a good or service goes to zero. |
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Term
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Definition
| The value or benefit of the next-best alternative use of money or time. |
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Definition
| A line on a graph showing the link between price and quantity demanded. |
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Term
| Downward-sloping demand curve |
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Definition
| A demand curve that is consistent with the law of demand, so that an increase in price leads to a decline in quantity demanded. As a result, the line slopes down when read from left to right. |
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Definition
| The amount of a good or service that a seller is willing to supply at a given price. |
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Definition
| The link between a seller's quantity supplied and the market price. |
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Definition
| The sum of the supply schedules for all the individual suppliers in a market. |
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Definition
| The tendency of quantity supplied to rise if the price rises, all other things being equal. |
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Definition
| A line on a graph showing the link between price and quantity supplied. |
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Term
| Upward-sloping supply curve |
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Definition
| A supply curve that is consistent with the law of supply, so that an increase in price leads to an increase in quantity supplied. As a result, the line slopes up when read from left to right. |
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Definition
| Markets with new products and services, or markets that include mostly new buyers and sellers. |
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