As the price of a good increases, the quantity supplied increases, and vice versa.
Satisfaction or pleasure derived from consuming goods and services.
The additional satisfaction gained from consuming one more unit of a good or service.
As the price of a good decreases, the quantity demanded increases, and vice versa.
Measures how much the quantity demanded responds to a change in price.
In the short-run, at least one input is fixed; in the long-run, all inputs can be varied.
Insights into how consumers make decisions can inform marketing and product development.
How quantity demanded changes as consumer income changes.
Costs to third parties, such as pollution.
The limit on the consumption choices of individuals based on their income and the prices of goods.
Understanding consumer behavior and market dynamics aids in crafting effective economic policies.
Quantity demanded changes significantly with price changes.
Costs or benefits incurred by third parties not involved in a transaction.
The point where the quantity demanded equals the quantity supplied.
A market structure with few firms, where products may be identical or differentiated, and firms make interdependent decisions.
Quantity demanded changes little with price changes.
Benefits to third parties, such as those from education.
The branch of economics that studies individual agents and markets, focusing on the behavior of consumers and firms.
The relationship between inputs used in production and the resulting output.
To optimize pricing, production, and marketing strategies.
Many firms, identical products, free entry and exit.
It provides essential tools for analyzing individual market behavior and decision-making processes.
A single firm dominates the market, offering a unique product with high barriers to entry.
Many firms offering differentiated products with some control over prices.
Goods that are non-excludable and non-rivalrous, like national defense.
Situations where one party has more or better information than the other, such as in the used car market.
