Econ 3.2 vocab

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Ceteris paribus

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A Latin phrase meaning 'all other things being constant.' It is used in economics to isolate the effect of one variable by holding other relevant factors constant.

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Non-price determinants

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Factors other than price that can affect demand and supply, such as consumer preferences, income levels, and the prices of related goods.

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Normal good

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A type of good for which demand increases as consumer income rises, and decreases as income falls.

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Inferior good

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A type of good for which demand decreases as consumer income rises, and increases as income falls.

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Demographics

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Statistical characteristics of a population, such as age, race, gender, occupation and income level

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Complements

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Goods that are often used together, so that the consumption of one good tends to enhance the consumption of the other.

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Substitutes

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Goods that can be used in place of one another. An increase in the price of one good can lead to an increase in demand for its substitute.