--- title: Economics | Study Finance description: Supply and Demand Supply and demand form the relationship between the quantity of a product or a service that sellers wish to sell, and the quantity of a p --- [![Carbon collective](https://www.carboncollectiveinvesting.com/hubfs/raw_assets/public/CarbonCollective_August2021%20copy/images/carbon-collective-green-investing-logo-white.4f6047d4.svg "Carbon collective")](https://www.carboncollectiveinvesting.com/) - About - Employers - [Sustainable 401(k)](https://www.carboncollectiveinvesting.com/401k) - [401(k) Comparison Tool](https://www.carboncollectiveinvesting.com/401k/plan-comparison-tool) - Individuals - [FAQ](https://www.carboncollective.co/en/knowledge/faqs) - [ETF](https://www.carboncollectivefunds.com/) - Learn - [Sustainable Investing](https://www.carboncollective.co/sustainable-investing) - [Investing Basics](https://www.carboncollective.co/sustainable-investing/investing-basics) - [Blog](https://blog.carboncollective.co/) - 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[Blog](https://blog.carboncollective.co/) - [Tools](https://tools.carboncollective.co/calculator/) - Log in - [Carbon Collective](https://app.carboncollective.co) - [Altruist](https://app.altruist.com) [Talk to a human](https://ask.carboncollective.co/f4o5dylkg) [Sign up](https://app.carboncollective.co/sign-up) [Log In](http://app.carboncollective.co/) **[Home](https://www.carboncollectiveinvesting.com/) > [Sustainable Investing](https://www.carboncollectiveinvesting.com/sustainable-investing) >** Economics # Economics ![](https://www.carboncollectiveinvesting.com/hubfs/Brooke%20Tomasetti.png) Written by Brooke Tomasetti | Reviewed by [Subject Matter Experts](https://www.carboncollectiveinvesting.com/subject-matter-experts) Updated on October 1, 2024 Fact Checked Why Trust Carbon Collective? ### Table of Contents - [Supply and Demand](https://www.carboncollectiveinvesting.com/sustainable-investing/supply-and-demand/) Supply and demand form the relationship between the quantity of a product or a service that sellers wish to sell, and the quantity of a product or a service that consumers wish to purchase. - [Competition](https://www.carboncollectiveinvesting.com/sustainable-investing/competition/) Definition of Competition Competition is a situation in which someone is trying to win something or be more successful than someone else. - [Inverse Relationship](https://www.carboncollectiveinvesting.com/sustainable-investing/inverse-relationship/) Definition of Inverse Relationship Inverse relationship is a type of correlation that exists between two variables wherein an increase in one variable is associated with a decrease in another variable. - [Supply](https://www.carboncollectiveinvesting.com/sustainable-investing/supply/) “Production or manufacture” is the process of converting raw materials into finished goods. - [Annual Income](https://www.carboncollectiveinvesting.com/sustainable-investing/annual-income/) Definition: Income is money (or some equivalent value) that an individual or business gets, usually in exchange through investing capital or providing a good or service. - [Consumption](https://www.carboncollectiveinvesting.com/sustainable-investing/consumption/) Consumption flow and expenditure can be crucial to understand the fluctuations in the different business cycles. - [Crossover Rate](https://www.carboncollectiveinvesting.com/sustainable-investing/crossover-rate/) Crossover rate is the cost of the capital where two projects have the same net present values (NPV) or where their NPV profiles intersect. - [What are Determinants of Supply?](https://www.carboncollectiveinvesting.com/sustainable-investing/determinants-of-supply/) Determinants of supply are the factors that can causes changes to, or affect, the supply of a product in the market. - [What is Equilibrium?](https://www.carboncollectiveinvesting.com/sustainable-investing/what-is-equilibrium/) Equilibrium is where the products or services demanded in a market is equivalent to the products or services that are supplied in the market. - [What is Perfectly Inelastic Demand?](https://www.carboncollectiveinvesting.com/sustainable-investing/perfectly-inelastic-demand/) Perfectly inelastic is where a small increase or decrease in the price of a product will have no effect on the quantity that is demanded or supplied of that product. - [What is Voluntary Exchange?](https://www.carboncollectiveinvesting.com/sustainable-investing/voluntary-exchange/) A voluntary exchange is a transaction where two people trade goods or services freely, there is no coercive or restrictive force involved in the transaction. - [What is Perfectly Elastic Demand?](https://www.carboncollectiveinvesting.com/sustainable-investing/perfectly-elastic-demand/) A perfectly elastic demand curve will be a straight line (horizontal) on a graph, where the x-axis will be the quantity, and the y-axis will be the price of the product. - [What is Economic Profit?](https://www.carboncollectiveinvesting.com/sustainable-investing/economic-profit/) Economic profit can be calculated by subtracting the opportunity cost from the accounting profit. - [What is a Supply Schedule?](https://www.carboncollectiveinvesting.com/sustainable-investing/what-is-a-supply-schedule/) The supply schedule is a graph that shows you how much products are demanded from customers at a specific price based on the supply curve. - [What is a Check Register?](https://www.carboncollectiveinvesting.com/sustainable-investing/check-register/) A check register, also known as cash disbursement journal, is the journal that records all the checks, cash and cash outlay during an accounting period. - [What is Market Demand?](https://www.carboncollectiveinvesting.com/sustainable-investing/market-demand/) Market demand refers to the sum of individual demand for a product available in the market. - [Interest Rate Parity](https://www.carboncollectiveinvesting.com/sustainable-investing/interest-rate-parity/) Interest rate parity (IRP) is a concept which states that the interest rate differential between two countries is the same as the differential between the forwarding exchange rate and the spot exchange rate. - [Unit Elastic Demand](https://www.carboncollectiveinvesting.com/sustainable-investing/unit-elastic-demand/) Unit elastic demand is the economic theory that assumes a change in product price causes an equal and proportional change in the quantity demanded. - [What is Primary Economic Activity?](https://www.carboncollectiveinvesting.com/sustainable-investing/primary-economic-activity/) A primary economic activity refers to any kind of economic activity that involves collecting, extracting or harvesting natural resources. - [What is Production?](https://www.carboncollectiveinvesting.com/sustainable-investing/production/) Production is the process of making or manufacturing goods and products from raw materials or components. - [What is a Monopoly?](https://www.carboncollectiveinvesting.com/sustainable-investing/monopoly/) Monopoly refers to a type of market structure in which a single company and its goods and services dominate the market at all times. - [Inflation Rate](https://www.carboncollectiveinvesting.com/sustainable-investing/inflation-rate/) The inflation rate is the percentage increase in the average level of prices of a basket of selected goods over time.   ### Related Topics - [Sustainable 401(k) Plan](https://www.carboncollective.co/401k) - 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