Finance/economy/investing phrases that you should know.

 Below are some basic concepts worth knowing and understanding.

1. Demand

The functional relationship between the price of a product and its quantity. In other words, the desire/need to purchase a given good/service by customers.

2. Supply

The quantity of goods offered on the market by producers. In other words, the availability of a given good/service.

3. Margin

The difference between the selling price and the purchase price. For example, if a store sells a product for 2 dollars and bought it from the supplier for 1 dollar, the store's margin on this product is 1 dollar.

4. Revenue

The total value obtained from the sale of goods and services net in a given accounting period, before taxes and costs are considered.

5. Income

Simply put, income is revenue minus the costs of obtaining it.

6. Inflation

A prolonged process of rising prices. It goes hand in hand with the loss of currency value.

7. Deflation

A prolonged process of falling prices. It goes hand in hand with the increase in currency value.

8. Stagflation

The occurrence of inflation and economic stagnation at the same time.