the comparison of marginal (extra or additional) benefits and marginal costs, usually for decision making
the satisfaction obtained from consuming a good or service
a very well-tested and widely accepted theory is referred to as a law or principle.
simplified representations of how something works, such as a market or segment of the economy
the systematic pursuit of knowledge by observing facts and formulating and testing hypotheses to obtain theories, principles, and laws
statements about economic behavior or the economy that enable prediction of the probable effects of certain actions.
ceteris paribus, the assumption that factors other than those being considered do not change.
the part of economics concerned with individual units such as a consumer, a household, a firm, an industry, or a worker
a collection of specific economic units treated as if they were one unit
the part of economics concerned with the economy as a whole or major components of the economy
the need for individuals and society to make choices because wants exceed means
a line that shows various combinations of two products a consumer can purchase what a specific money income, given the products’ prices
the condition in which human wants are always greater than the available supply of goods and services available
Law of demand
the higher the price of a good, the smaller is the quantity demanded; and , the lower the price of a good, the greater is the quantity demanded, CETERIS PARIBUS
the quantity of the product which an individual will buy at a specific price
Law of supply
the higher the price of a good, the greater is the quantity supplied; and the lower the price of a good, the smaller is the quantity supplied CETERIS PARIBUS
the quantity of the product an individual firm will supply at that price