The free market is a fundamental concept in economics, characterized by a system of unrestricted exchange where goods and services are traded voluntarily without government intervention.

Economic values is a fundamental concept in economics that pertains to the significance individuals assign to goods and services based on their preferences and decision-making processes.

The demand curve illustrates the relationship between price and quantity demanded, showing how consumers react to price changes. For most goods, the demand curve slopes downwards, indicating that as prices decrease, the quantity demanded increases—this is a reflection of the law of demand.

Dependency: Derived demand is dependent on the demand for an intermediate good or service. For instance, if a bakery experiences increased demand for bread, it will subsequently require more flour, leading to higher demand for wheat.