1

Market

A place where buyers and sellers negotiate for buying & selling of goods & services.

2

Monopolistic market

Single person controls the market

3

Duepoly

Two persons hold the market

4

Oligoply

A market situation when there are about five to twenty sellers of a commodity in the market.

5

Monoplistic competition

When there are more sellers than oligoply but less than perfect competition (less than 100)

6

Perfect competition/ perfect market/ free market

100+ sellers, price taker, open entry & exit, total awareness, price set by demand & supply.

7

Demand

Willness to purchase + powers to purchase

8

Individual demand

Demand of a single person.

9

Market demand

Agregate of all individual demands.

10

Law of demand

When price of a commodity increases, its demand decreases and vice versa.

11

Supply

Quantity of a good offered for sale in the market on a particular time.

12

Law of supply

When price of a commodity increases, oits supply also increases, and vice versa.

13

Market equilibrium/ demand and supply together

A situation when the quantity demanded and supplied become equal.

14

Equilibrium price

Price at equilibrium point.

15

Equilibrium quantity

Quantity demanded and supplied at equilibrium point.

16

Inferior goods

Goods whose demand decreases with the increase in incomes of people and vice versa.

17

Superior goods

Goods whose demand increases wih the increase in incomes of people and vice versa.

18

Normal goods

Goods whose demand decreases with the increase in their prices and vice versa.

19

Giffen goods

Goods whose demand increases with the increase in their prices and vice versa.

20

Substitute goods

Goods which can be use in place of each other, like floor and rice.

21

Complementary goods

Goods which cannot be...