Complementary
goods – goods that are often purchased together, such as bread and butter.
Demand
curve – the graphical representation of the demand function. The
demand function
relates price and quantity demanded. It tells how many units of a good will be
purchased at different prices. In general, at higher prices, less will be purchased, so
demand curves slope downward. The market demand function is calculated by
adding up all of the individual consumersÕ demand functions.
Demand
function – the mathematical function that relates price and quantity demanded for
goods or services. It tells how many units of a good will
be purchased at
different prices. The market demand function is calculated
by adding together all
of the individual consumersÕ demand functions.
Discount
rate – the rate used to reduce future benefits and costs to their
present time
equivalent.
Economic
efficiency – the allocation of goods to their highest relative economic value.