Economics vocabulary

THE PAYMENT RECIEVED BY THE FACTORS OF PRODUCTION (E.G. WAGES PAID TO LABOUR,

RENT PAID TO THE OWNERS OF LAND)

• EFFECTIVE DEMAND

• INCOME

• FACTORS OF PRODUCTION

AS PRICE CHANGES SOME CONSUMERS SWITCH SOME OF OR ALL OF THEIR CONSUMPTION OF ONE

GOOD TO A RELATIVELY CHEAPER SUBSTITUTE GOOD.

• EFFECTIVE DEMAND

• INCOME EFFECT

• SUBSTITUTION EFFECT OF A CHANGE IN PRICE

A PERSON WHO BUYS A GOOD

• EFFECTIVE DEMAND

• CONSUMER

• SUBSTITUTION EFFECT OF A CHANGE IN PRICE

WHEN A CONSUMER IS NOT ONLY WILLING TO BUY A GOOD BUT IS ALSO ABLE TO BUY IT

• EFFECTIVE DEMAND

• CONSUMER

• SUBSTITUTION EFFECT OF A CHANGE IN PRICE

A BUSINESS THAT PRODUCES AND SELLS GOODS

• SUPPLIER

• CONSUMER

• SUBSTITUTION EFFECT OF A CHANGE IN PRICE

AS PRICE CHANGES THE QUANTITY OF GOOD THAT CAN BE BOUGHT WITH THE SAME INCOME CHANGES. THEREFORE, AS PRICE CHANGES QUANTITY DEMANDED CHANGES.

• EFFECTIVE DEMAND

• CONSUMER

• INCOME EFFECT OF A CHANGE IN PRICE

THE AMOUNT OF A GOOD THAT CONSUMERS ARE WILLING AND ABLE TO BUY AT EACH PRICE.

• DEMAND

• CONSUMER

• INCOME EFFECT OF A CHANGE IN PRICE

THE AMOUNT OF A GOOD CONSUMERS ARE WILLING AND ABLE TO BUY AT A GIVEN PRICE OVER A GIVEN PERIOD OF TIME.

• QUANTITY DEMAND

• CONSUMER

• INCOME EFFECT OF A CHANGE IN PRICE

PRODUCTS THAT CAN BE SEEN AND TOUCHED

• GOODS

• SERVICES

• FACTORS OF PRODUCTION