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"Ceteris paribus" ("all else equal") condition
The requirement that when analyzing the relationship between two variables- i.e. price and quantity demanded- other variables must be held constant.
Competitive market equilibrium
A market equilibrium with many buyers and sellers.
Complements
Goods and Services that are used together.
Demand Curve
A curve that shows the relationship between the price of a product and the quantity of the product demanded.
Demand schedule
A table that shows the relationship between the price of a product and the quantity of the product demanded.
Demographics
The characteristics of a population with respect to age, race, and gender.
Income effect
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, ceteris paribus.
Inferior Good
A good for which the demand increases as income falls and decreases as income rises.
Law of Demand
The rule that, ceteris paribus, when the price of a product falls, the quantity demanded of the product will increase, and when the price of a product rises, the quantity demanded of the product will decrease.
Law of Supply
The rule that, Ceteris paribus, increases in price causes increases in the quantity supplied, and decreases in price cause decreases in the quantity supplied.
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