Economic shortage - is a term describing a disparity between the amount demanded for

a product or service and the amount supplied in a market.

producer surplus is the amount that producers benefit by selling at a market price mechanism that is
higher than the least that they would be willing to sell for.

Change in Demand—results from change in a non-price determinant of demand.

Change in Quantity Demand—results from change in price.

elasticity of demand (ed) is a measure of the price responsiveness to the quantity demanded and is
equal to the percentage change in quantity demanded divided by the percentage change in price.

Price elasticity of supply - It measures the responsiveness between the percentage change in supply
with respect to the percentage change in price.

producer surplus is the amount that producers benefit by selling at a market price mechanism that is
higher than the least that they would be willing to sell for.

Price elasticity of income - It measures the responsiveness between the percentage change in demand
with respect to the percentage change in income.

Elastic – the computed value is greater than one hundred percent.

Inelastic- the computed value is less than one hundred percent.

Unitary - the computed value is equal to one hundred percent.

Market - any one of a variety of systems, institutions, procedures, social relations and infrastructures
whereby businesses sell their goods, services and labor to people in exchange for money.

Free Market - Free markets operate under ‘laissez-faire’ conditions, in that the government does not
intervene in how the market operates. These markets may be distorted if a seller gains monopoly power
by managing the majority of supply.

Currency Market - The currency markets are the largest cont

Stock market - Stock markets have become highly complex markets that allow investors to buy shares in
companies or in funds that aggregate companies or industries together.

Value-Added approach - refers to "extra" feature(s) of an item of interest (product, service, person, etc.)
that go beyond the standard expectations and provide something "more" while adding little or nothing
to its cost.

Price of other goods - the supply of one good may decrease if the price of another good increases
causing producers to reallocate resources to produce larger quantities of the more profitable good
Number of sellers - more sellers result in more supply, shifting the supply curve to the right

Prices of relevant inputs - if the cost or resources used to produce a good increase, sellers will be less
implied to supply the same quantity at a given price, and the supply curve will shift to the left

Equilibrium is defined to the price-quantity pair where the quantity demanded is equal to the quantity
supplied, represented by the intersection of the demand and supply curves.

Technology - technological advances that increase production efficiency shift the supply curve to the
right

Expectations - if sellers expect prices to increase, they may decrease the quantity currently supplied at a
given price in order to be able to have a supply more when the price increases, resulting in a supply
curve shift to the left