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supply and demand

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Term
Definition
Aggregate Demand   The total demand for a product in the whole economy or market  
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Consumer Surplus   The benefit earned by consumers due to the difference between the price they would have been willing to pay and the price they actually paid  
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Substitute Good   Different goods that a least partly satisfy the same needs of the consumer and therefore can be used to replace oneanother  
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Complementary Goods   A product that is typically used in conjunction with another product such that a change in demand for one product results in a change in the demand for the other product  
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Equilibrium Price   The market price at which the supply of an item equals the quantity demanded of that item  
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Law of supply   The law of supply states that as the price of a good rises suppliers are willing to supply more  
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Consumer Equilibrium   The point at which a consumer reaches optimum utility from the goods purchases give the constraint of income and prices  
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Demand Schedule   A table which contains values for the price of a good and the quantity that would be demanded at that price  
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