🔤 Glossary (44 terms)

A physical shop/building business.

💡 A shop in a mall

Goods the government buys and stores to keep prices stable.

💡 Govt wheat stored in godowns

The person who pays money to get something.

💡 You buying a burger

A secret group of sellers/buyers who agree together to control prices (often illegal).

💡 Sugar mills agreeing not to buy cane

Latin: “other things remaining the same.” We change only ONE thing and keep all else fixed.

💡 Only price changes; income, taste stay same

Goods used together.

💡 Car and petrol; tea and cups; printer and ink

Total money a firm spends to make goods.

💡 Wages + raw material + electricity

A graph line drawn from the schedule.

💡 Downward demand line D

Wish to buy + money to buy + willingness to pay.

💡 You want a phone AND have money AND will pay

Demand for factors of production (land, labour, machines) – derived from demand for the final good.

💡 Demand for bakers comes from demand for bread

Both go UP together or DOWN together.

💡 Price ↑ → quantity supplied ↑

Lasts long, can be stored.

💡 Motorbike, printer, mobile phone

Buying, selling, and sharing business info through the internet.

💡 Daraz, Amazon, Foodpanda

How strongly quantity reacts to a price change. Inelastic = reacts very little.

💡 Salt demand is inelastic

Balance point where quantity demanded = quantity supplied.

💡 QD = QS = 10 tons at Rs. 30

A very cheap staple whose demand FALLS when its price falls (people switch to better quality).

💡 Sir Robert Giffen's bread example

A physical thing you can touch.

💡 Rice, phone, car

Keeping goods off the market on purpose to raise price later.

💡 Hiding cotton/sugar in stores

Money a person earns.

💡 Monthly salary

Tax put on goods (e.g. sales tax) – raises the seller's cost.

💡 GST on products

Demand goes DOWN when income goes up (negative income effect).

💡 Cheap low-quality bread, local bus

Things used to make a product.

💡 Cotton for cloth, steel for cars

When one goes UP, the other goes DOWN.

💡 Price ↑ → quantity demanded ↓

Any place or system where buyers and sellers meet to trade.

💡 Empress Market, Daraz app, stock exchange

Demand goes UP when income goes up.

💡 Branded clothes, meat

The value of the next best thing you give up.

💡 Money spent on storing wheat could have built a school

Spoils quickly, cannot be stored long.

💡 Milk, fruit, vegetables

The money paid for one unit of a good.

💡 Rs. 500 per kg of chicken

Highest legal price set by government.

💡 Government-fixed price of flour

Lowest legal price set by government.

💡 Wheat support price, minimum wage

How much your money can buy.

💡 Rs. 1,000 buys less when prices rise

How many units (kg, tons, pieces).

💡 20 kg, 10 tons

The exact amount people buy at ONE particular price.

💡 At Rs. 400, 20 kg is demanded

The lowest price at which a seller is willing to sell.

💡 “I won't sell my phone below Rs. 20,000.”

A table showing prices and quantities.

💡 Price 500 → 10 kg; 400 → 20 kg

The person or business that makes or sells things.

💡 A poultry farmer, KFC

Work done for you (not a thing).

💡 Haircut, tuition, doctor visit

People want more than what is available (QD > QS).

💡 Sugar shortage, long queues

Goods produced but kept in store, not offered for sale.

💡 700 tons kept in warehouse

Money help given by government to producers – lowers cost.

💡 Fertilizer subsidy for farmers

A good used instead of another.

💡 Tea vs coffee; butter vs margarine; Pepsi vs Coke

The amount sellers offer for sale at a price.

💡 Farmer brings 300 tons to market

More goods offered than people want to buy (QS > QD).

💡 Unsold mangoes at end of day

Horizontal line (Quantity) / Vertical line (Price).

💡 In economics, Price is always on the Y-axis