Demand
Willingness and ability to buy goods and services
Individual Demand
Willingness and ability to buy goods and services of one individual in a market
Market Demand
Willingness and ability to buy goods and services of all individuals in the market
Contraction in Demand
Decrease in quantity demanded due to an increase in price
Extension in Demand
Increase in quantity demanded due to an decrease in price
Increase in Demand
Increase in quantity demanded due to factors other than the price. e.g. Increase in Income. Right shift in the demand curve.
Decrease in Demand
Decrease in quantity demanded due to factors other than the price. e.g. Decrease in Income. Left shift in the demand curve.
Supply
Willingness and ability to sell goods and services
Individual Supply
Willingness and ability to sell goods and services by one firm in a market
Market Supply
Willingness and ability to sell goods and services by all firms in a market
Extension in Supply
Increase in quantity supplied due to increase in price
Contraction in Supply
Decrease in quantity supplied due to decrease in price
Increase in Supply
Increase in the quantity supplied due to factors other price. e.g. Decrease in Production cost. Right shift in the supply curve.
Decrease in Supply
Decrease in the quantity supplied due to factors other price. e.g. Increase in Production cost. Left shift in the supply curve.
Market Equilibrium
It is when quantity demanded is equal to quantity supplied at a given price.
Market Disequilibrium
It is when quantity demanded is not equal to quantity supplied at a given price.