| Term | Definition |
|---|
| consumer surplus | difference between willingness to pay and actual price (you get more than you paid for) |
| change in demand | actual shift in the demand curve |
| caveat | when the demand for normal goods rises, the demand for inferior goods falls |
| bear market | when the stock market drops (around 20% and can last 9-18 months) |
| bull market | when the stock market rises (around 10% and can last 3-6 years) |
| equity | value - what you owe |
| price elasticity of demand | the extent to which a change in price causes a change in quantity demanded |
| elastic demand | a large change in price causes a large change in quantity demanded |
| inelastic demand | large change in price does not cause a large change in quantity demanded |
| supply | the amount of a product that would be offered for sale at all possible prices that could prevail in the market |
| law of supply | suppliers offer more at higher prices and offer less at lower prices |
| product differentiation | product differences are emphasized |
| non-price competition | appeal to consumers with anything but price |
| collusion | sellers secretly agree to set production levels |
| cartels | companies openly organizing a system |
| economies of scale | cost advantages obtained by expanding |
Combine with other sets
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