Allocation of Resources 4.0 / 5 based on 2 ratings ? EconomicsAllocation of ResourcesIGCSEOther Created by: Imogenbn99Created on: 27-10-15 09:00 Complementary Goods Purchased to support another product 1 of 28 Contraction in demand movement along the demand curve to the left (higher price and lower quantity demanded) 2 of 28 Contraction in supply movement along the supply curve to the right (lower price and lower quantity supplied) 3 of 28 Demand A want backed up by the ability to pay for a product 4 of 28 Diminishing marginal utility Consumption of addional units of a product provide less utility (satisfaction) each time 5 of 28 Effective demand The financial ability to purchase a product 6 of 28 Elasticity the responsivness of quantity supplied or demanded in relation to changes in price/income/other products 7 of 28 Equilibrium The point where the supply and demand curves intersect 8 of 28 Excess demand Quantity demanded is greater than the quantity supplied at a given price 9 of 28 Excess supply quantity supplied is greater than the quantity demanded at a given price 10 of 28 Extension in demand a movement along the demand curve to the right (lower price and higher quantity demanded) 11 of 28 Extension in supply a movement along the supply curve to the right (higher price and higher quantity supplied) 12 of 28 External Costs Costs of production that have to be paid by someone other than the firm/individual 13 of 28 Externall benefits benefits of production to population not associated with the firm 14 of 28 Individual demand the amount a single person would be willing to buy at a range of prices 15 of 28 Inferiour goods Goods that consumers demand less of as incomes increase due to them being able to buy higher quality alternatives 16 of 28 Marginal Utility The additional satisfaction gained from the consumption of an extra unit of a product 17 of 28 Market demand The total demand for a product 18 of 28 Price elastic demand and percentage change in price results greater percentage in quantity demanded 19 of 28 Price inelastic demand a percentage change in price results in smaller percentage cahnge in quantity demanded 20 of 28 Price elastic supply A percentage change in price results in a greater percentage in quantity supplied 21 of 28 Price inelastic supply a percentage change in price results in smaller percentage change in quantity supplied 22 of 28 Private Costs The costs that the company/individual has to pay for production 23 of 28 Social costs Private costs + external costs 24 of 28 Social benefits Private benefits + external benefits 25 of 28 Substitute goods Alternative for a product 26 of 28 Supply The number of goods/services firms are able/willling to produce at a range of prices 27 of 28 Unitary Elasticity Percentage change in price results equal percentage change in quantity demanded or supplied 28 of 28
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