The change in the quantity of a product demanded resulting from a
change in real income (holding relative prices constant).
Giffen good
An inferior good for which the income effect outweighs the substitution
effect so that the demand curve is positively sloped.
consumer surplus
The difference between the total value that consumers place on all units
consumed of a product and the payment that they actually make to
purchase that amount of the product.
single proprietorship
A firm that has one owner who is personally responsible for the firm’s
actions and debts.
ordinary partnership
A firm that has two or more joint owners, each of whom is personally
responsible for the firm’s actions and debts.
limited partnership
A firm that has two classes of owners: general partners, who take part in
managing the firm and are personally liable for the firm’s actions and
debts, and limited partners, who take no part in the management of the
firm and risk only the money that they have invested.
corporation