Goods Market and Factors Market:

Goods  market  is  the  market  where  goods  are  bought  and  sold  for  the  purpose  of consumption

Factors markets are the markets in which factors of production are bought and sold, for purpose of production.

Normal goods are the goods whose quantity demanded rises as the consumer income increases.

Inferior goods are the goods whose quantity demanded goes decreases as consumer income increases.

Giffen goods are the special case of the inferior goods whose quantity demanded increases when the price of the good increases which means the income effect dominates substitution effect.

Price effect is the sum of the income and the substitution effects.

Income effect is the effect of the price rise on the quantity demanded which works through a decline in real income or the purchasing power of the consumer. Income effect may be positive or negative depending upon whether the good is normal or inferior.

Substitution effect is effect of the price rise on the quantity demanded which works through the consumer switching to the substitute goods. The substitution effect the price rise, it is negative always.

Substitutes are goods which compete with one another or can be substituted for one another, such as margarine and butter.

Compliments are goods which go hand in hand with one another. Such as is left shoe and right shoe, or bread and butter

Cash crops are the crops which are not used as edible food but as a raw material in factories and for the exports and imports such as cotton.