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# Terms to Remember - **Market** is the interaction between buyers and sellers for trading or exchange. In this interaction, buyers buy and the sellers sell what the former wants. - **Goods market** is the most common type of market in which consumer goods are bought and sold. - **Consumer goods**...

# Terms to Remember - **Market** is the interaction between buyers and sellers for trading or exchange. In this interaction, buyers buy and the sellers sell what the former wants. - **Goods market** is the most common type of market in which consumer goods are bought and sold. - **Consumer goods** are tangibles that satisfy the consumers' needs and wants directly. - **Labor market** is an interactive platform for workers to offer their services and look for jobs and for employers to look for workers to hire. - **Stock market** is for trading corporate business ownership. - **Demand** is the willingness of a consumer to buy a commodity at a given price. It is the quantity of a good that a person will buy in a given period (e.g. weekly) for a given price of a good. - **Demand schedule** lists the specific number of units that the consumer will buy at different prices. It is a tabulation of various quantities that will be bought at given prices. - **Demand function**, expressed in an equation, indicates how the quantity demanded for a good (the dependent variable) depends on its determinants, the most important of which is the price of the good itself. For example, $Qd = f(P)$ means that the quantity demanded of a good is dependent on the price of that good. - **Demand curve** is a graphical illustration of the demand schedule, with the price measured on the vertical axis $Y$ and the quantity demanded measured on the horizontal axis $X$. - **Nonprice variables** are factors other than price that can also influence the demand and supply of a good. - **Income effect** refers to the situation in which the price of good changes the consumer's purchasing power or real income. Real income is the volume of goods and services the money income can buy. This volume is otherwise called the purchasing power of income. - **Substitution effect** is the situation in which the price of good changes and the price of the substitute good remains constant, and the consumer substitutes the cheaper commodity for the costlier one. - **Ceteris paribus assumption** means all other related variables, except those that are being considered, are held constant. - **Substitute goods** are those which are used in place of each other. - **Complements** are goods that are used together. - **Movement along the curve** is a change from one point to another on the same curve. A movement shows a change in the quantity demanded or supplied due to a change in the price of the goods. - **Shift of the curve** is a movement of the entire demand or supply curve due to the change in a nonprice determinant - **Supply** refers to the quantity of goods that a seller is willing to offer for sale for a specified price in a given period (e.g. monthly). - **Supply schedule** lists the specific number of units that the producer/seller will offer for sale at different prices in a given period of time. - **Supply curve** is a graphical illustration of the supply schedule, with the price measured on the vertical axis $Y$ and the quantity supplied measured on the horizontal axis $X$. - **Cost of production** refers to the expenses incurred to produce the goods.