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income effect
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The change in the quantity demanded of a good that results from the effect of a change in the good's price on consumers' purchasing power.
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Law of Demand
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Consumers will buy more of a good when its price is lower and less when its price is higher.
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Law of Supply
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Tendency of suppliers to offer more of a good at a higher price.
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explicit cost
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A cost that involves spending money.
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implicit cost
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A non-monetary opportunity cost.
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monopoly
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A market in which there is only one seller.
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shift left
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An decrease in supply or demand.
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shift right
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An increase in supply or demand.
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determinants of demand
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Factors other than price that determine the quantities demanded of a good or service; change in income, price of substitute, price of complement, tastes and preferences, expectations.
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determinants of supply
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Factors other than price that determine the quantities supplied of a good or service; subsidies or taxes, technology, other goods, number of sellers, expectations, resource costs.
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