complement  a good that is usually consumed or used together with another good.
deferred payment contract  an agreement between a worker and an employer whereby the worker is paid less than the marginal revenue product when young, and subsequently paid more than the marginal revenue product when old.
demand  a relationship between price and quantity demanded.
demand curve  a graph of demand showing the downward-sloping relationship between price and quantity demanded.
demand schedule  a tabular presentation of demand showing the price and quantity demanded for a particular good, all else being equal.
equilibrium price  the price at which quantity supplied equals quantity demanded.
equilibrium quantity  the quantity traded at the equilibrium price.
inferior good  a good for which demand decreases when income rises and increases when income falls.
law of demand  the tendency for the quantity demanded of a good in a market to decline as its price rises.
law of supply  the tendency for the quantity supplied of a good in a market to increase as its price rises.
market equilibrium  the situation in which the price is equal to the equilibrium price and the quantity traded equals the equilibrium quantity.
minimum wage  a wage per hour below which it is illegal to pay workers.
normal good  a good for which demand increases when income rises and decreases when income falls.
price  refers to a particular good and is defined as the amount of money or other goods that one must pay to obtain the good.
price ceiling  a government price control that sets the maximum allowable price for a good.
price control  a government law or regulation that sets or limits the price to be charged for a particular good.
price elasticity of demand  the percentage change in the quantity demanded of a good divided by the percentage change in the price of that good.
price elasticity of supply  the percentage change in quantity supplied divided by the percentage change in price.
price floor  a government price control that sets the minimum allowable price for a good.
quantity demanded  the quantity of a good that people want to buy at a given price during a specific time period.
quantity supplied  the quantity of a good that firms are willing to sell at a given price.
rent control  a government price control that sets the maximum allowable rent on a house or apartment.
shortage  the situation in which quantity demanded is greater than quantity supplied.
substitute  a good that has many of the same characteristics as and can be used in place of another good.
supply  a relationship between price and quantity supplied.
supply curve  a graph of supply showing the upward-sloping relationship between price and quantity supplied.
supply schedule  a tabular presentation of supply showing the price and quantity supplied of a particular good, all else being equal.
surplus  the situation in which quantity supplied is greater than quantity demanded.