Supply and demand/Related Articles

• Consumer surplus: The excess of what a consumer is willing to pay for a product over what he has to pay for it. ^[e]
• Cross elasticity of demand: The percentage change in the quantity demanded of one good as a result of a unit percentage change in the price of another good. ^[e]
• Diminishing returns: The tendency for the output resulting from the employment of an addition unit of a factor of production to fall as the amount of that unit is increased when all other factors of production are held constant (cf economies of scale). ^[e]
• Economies of scale: The factors that cause the cost of production of a product to fall as output of the product is increased. ^[e]
• Elasticity: Please do not use this term in your topic list, because there is no single article for it. Please substitute a more precise term. See Elasticity (disambiguation) for a list of available, more precise, topics. Please add a new usage if needed.
• Elasticity of demand: The percentage change in the amount of a product that is demanded that is caused by a unit percentage change in its price. ^[e]
• Elasticity of substitution: The percentage change in the ratio of the amounts of two products that is demanded that is caused by a unit percentage change in the ratio of their unit prices. ^[e]
• Externality: A cost of production that is not borne by the producer, or a benefit that the producer does not receive. ^[e]
• Giffen good: An "inferior product" for which the amount demanded falls when its price falls (because the increase in income resulting from the price reduction prompts the consumer to switch expenditure to a more expensive product). ^[e]
• Income effect: The tendency of the demand for a product to change in response to a change in its price because the price change has the effect of changing the consumer's income. ^[e]
• Income elasticity of demand: The percentage change in the demand for a product that is caused by a unit percentage change in consumers' incomes. ^[e]
• Incomplete contract: A contract that does not fully specify what each party to it must do under every conceivable circumstance. ^[e]
• Incomplete contract costs: The costs that arise when circumstances not envisaged in an incomplete contract result in a loss of expected benefits or the need for renegotiation. ^[e]
• Marginal utility: The increase in the satisfaction experienced by a consumer caused by a unit increase in his possession of a product. ^[e]
• Nash equilibrium: A situation in game theory in which no player can improve his position, given the responses of the other players. ^[e]
• Market: A term used in commerce and economics to denote a conjunction of buyers and sellers. ^[e]
• Market power: The ability of a supplier to exercise a degree of choice concerning the pricing of a product by restricting its supply: a measure of departure from the ideal of perfect competition in which every supplier is a price-taker ^[e]
• Price elasticity of demand: see elasticity of demand
• Producer surplus: The excess of the revenue that a producer gets from the sale of a product over the minimum that he would be willing to accept for it. ^[e]
• Substitution effect: The tendency of consumers to switch spending to or from a product in response to a change in its price relative to that of a substitute. ^[e]
•  Veblen good: A product, the demand for which increases when its price increases because consumers obtain more satisfaction from more expensive products. ^[e]
• Walras' law: The sum of the excess demands in all of the markets in a closed economy is equal to zero. ^[e]
• Wieser's law: The costs of production under competitive conditions are a reflection of the value of the alternatives which are displaced. ^[e]
•  Market for lemons: One in which consumers cannot distinguish products of quality from defective goods. ^[e]