Market: A group of buyers and sellers of a particular good or service
Competitive market: A market in which there are many buyers and sellers so that each has a negligle impact on the market price. (købere og sælgere er pristagere)
Homogene goods: Completely replaceable goods:
Quantity demanded: the amount of a good that buyers are willing and able to purchase at different prices.
Law of demand: the claim that other things being equal the quantity demanded of a good falls when the price of the good rises. Prices up demand down.
Demand schedule: A table that shows the relationship between the price of a good and the quantity demanded.
Demand curve: a graph of the relationship between the price of a good and the quantity demanded.
Substitutes: two goods for which an increase in the price of one leads to an increase is the demand for the other. (vice versa). More milk leads to less juice.
Complements: two goods for which an increase in the price of one leads to a decrease in the demand of the other. More eggs leads to more bacon
Normal good: A good for which an increase in income leads to an increase in demand. Rich spend more on this good.
Inferior good: A good for which an increase in income leads to a decrease in demand. Rich spend less on this good.
Quantity supplied:
Law of supply:
Supply schedule: