The amount consumers are willing and able to buy at a given price over a given time period.
The quantity of a good or service that firms plan to sell at a given price in a given time period.
The use of materials for one thing means you cannot use them again else where.
Factors of Production
Land, Labour, Capital and Enterprise
A machine- used to produce other goods including consumer goods.
A good used by consumers to meettheir need or wants.
An Invention system that aims to limit the fluctuations of the price of a commodity.
Goverment spending to improve the productive capacity of the nation, including infrastructure, schools and hospitals.
A market situation in which there are a large number of buyers and sellers.
Goods that are consumed together, for example bread and butter, or DVDs and DVD players.
Complete market failure
Where the free market fails to provide a product at all i.e. the case of public goods.
A good that would be over-consumed in a free market, as it brings less overall benefit to consumers that they realize.
A situation within the market where supply does not equal demand.
Division of labour
Breaking the production process down into a sequence of tasks, with workers assigned to particular tasks.
Economies of scale
Where an increase in the scale of production leads to reductions in average total cost for firms.
The price at which demand is equal to supply and there is no tendency for change.
When demand is greater than supply at a given price.
When supply at a particular price is greater than demand, this should signal to producers to lower prices.
Costs or benefits that spill over to third parties external to a market transaction.