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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 <a class="wiki_link_ext" href="http://www.economist.com/research/economics/alphabetic.cfm?term=price#price" rel="nofollow">__price.__</a> 
 
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.