any increase or decrease in consumer's purchasing power caused by change in price
Demand
consumers are willing and able to buy a good or service
determinants of demand
A shift in either the D2 or D3 curve means that a different quantity of car stereos is demanded at each and every price
supply curve
a graphic representation of a supply schedule, showing the relationship between the price of an item and the quantity supplied during a given time period, with all other things being equal
minumun wage
the lowest hourly rate that an employer legally can pay a worker, as established by federal law
law of demand
increase in a goods price causes a decrease in the quantity demanded
marginal costs
the costs of producing one additional unit of output
law of deminishing returns
the priniciple that as more of one input (such as labor) is added to a fixed supply of other resources (such as capital), productivity will increase up to a point, after which the marginal product will diminish
profit motive
the desire to make money
market equilibrium
the point at which the quantity supplied and quantity demanded for a product are equal at the same prices
