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 * Economic Term Definitions**


 * Economics: ** the study of how individuals and groupsmake decisions with limited resources as to best satisfy their wants, needs,and desires.
 * Demand: ** Demand is the want or desire to possess a good or service withthe necessary goods, services, or financial instruments necessary to make alegal transaction for those goods or services.
 * The Price Elasticity of **** Demand ** (commonlyknown as just price elasticity) measures the rate of response of quantitydemanded due to a price change. The formula for the Price Elasticity of Demand(PEoD) is: **PEoD = (% Change inQuantity Demanded)/(% Change in Price)**


 * Supply **: theamountof a good or service available atany particular [|__price.__]


 * Money** : Money is a good that acts as a medium ofexchange in transactions. Classically it is said that money acts as a unit ofaccount, a store of value, and a medium of exchange
 * Inflation ** :an increase in the price of a basket of goods and services thatis representative of the economy as a whole.