Absolute (Money) Price

Decisions at the Margin Decision
making characterized by weighing the additional (marginal) benefits of a change against
the additional (marginal) costs of a change
with respect to current conditions.
Decreasing-Cost Industry An industry
in which average total costs decrease as
output increases and increase as output
decreases when firms enter and exit the
industry, respectively.
Demand The willingness and ability of
buyers to purchase different quantities of
a good at different prices during a specific
time period.
Demand Curve The graphical representation of the law of demand.
Demand for Money (Balances) The
inverse relationship between the quantity
demanded of money balances and the price
of holding money balances.
Demand Schedule The numerical tabulation of the quantity demanded of a good at
different prices; the numerical representation
of the law of demand.
Depreciation A decrease in the value of
one currency relative to other currencies.
Derived Demand Demand that is the result
of some other demand. For example, factor
demand is derived from the demand for the
products that the factors go to produce.
Devaluation A government action that
changes the exchange rate by lowering the
official price of a currency.
Diamond-Water Paradox The observation that things with the greatest value in
use sometimes have little value in exchange
and things with little value in use sometimes
have the greatest value in exchange.
Direct Finance Borrowers and lenders
come together in a market setting, such as in
the bond market.