| Occam's razor | the logical principle that states you should make no more assumptions than the minimum amount needed to perform analysis; in economics, we use the concept of Occam's razor when we invoke the ceteris paribus assumption. |
| ceteris paribus or Law of demand: | the higher the price of a good, the smaller is the quantity demanded; and the lower the price of a good, the greater is the quantity demanded. |
| Law of supply: | Suppliers will offer more for sale at higher prices and less at lower prices. As the price of a good rises, quantity supplied rises. |
| Law of diminishing marginal utility: | The more we consume a product, the less benefit or utility we get. |
| 6 factors that cause demand to shift: | Income; preferences; price of related goods; population; future prices; expected future income or credit |
