barter  the direct exchange of goods and services without the use of money
complementary goods  goods that are used together (as the price of one rises, the demand for the other falls)
demand  the quantities of a well-defined commodity that consumers are willing and able to buy at each possible price during a given period of time, ceteris paribus
demand curve  a graph of a demand schedule that meas­ures price on the vertical axis and quantity demanded on the horizontal axis
demand schedule  a list or table of the prices and the corre­­sponding quantities demanded of a particular good or service
determinants of demand  factors other than the price of the good that influence demand—income, tastes, prices of related goods and services, expectations, and number of buyers
determinants of supply  factors other than the price of the good that influence supply—prices of resources, technology and productivity, expectations of producers, number of producers, and the prices of related goods and services
disequilibrium  a point at which quantity demanded and quantity supplied are not equal at a particular price
double coincidence of wants  the situation that exists when A has what B wants and B has what A wants
equilibrium  the point at which quantity demanded and quantity supplied are equal at a particular price
exchange rate  the price of one country’s money in terms of another country’s money
law of demand  as the price of a good or service rises (falls) , the quantity of that good or service that people are willing and able to purchase during a particular period of time falls (rises) , ceteris paribus
law of supply  as the price of a good or service that producers are willing and able to offer for sale during a particular period of time rises (falls) , the quantity of that good or service supplied rises (falls), ceteris paribus
price ceiling  a situation where the price is not allowed to rise above a certain level
price floor  a situation where the price is not allowed to decrease below a certain level
productivity  the quantity of output produced per unit of resource
quantity demanded  the amount of a product that people are willing and able to purchase at a specific price
quantity supplied  the amount sellers are willing and able to offer at a given price, during a given period of time, everything else held constant
relative price  the price of one good expressed in terms of the price of another good
shortage  a quantity supplied that is smaller than the quantity demanded at a given price
substitute goods  goods that can be used in place of eachother (as the price of one rises, the demand for the other rises)
supply  the amount of a good or service that producers are willing and able to offer for sale at each possible price during a period of time, ceteris paribus
supply curve  a graph of a supply schedule that measures price on the vertical axis and quantity supplied on the horizontal axis
supply schedule  a list or table of prices and corresponding quantities supplied of a particular good or service
surplus  a quantity supplied that is larger than the quantity demanded at a given price
transaction costs  the costs involved in making an exchange