Economics Unit 1 1.0 / 5 based on 1 rating ? EconomicsASAQA Created by: naomiCreated on: 04-05-13 13:10 Competitive Demand ? two or more goods are substituted for each other 1 of 37 dervied demand demanded for production of another good 2 of 37 composite demand goods demanded for two or more distinct uses 3 of 37 normative statement statement that is a value judgement 4 of 37 joint supply - two or more goods supplied for different purposes = ^ D > ^ £ > ^ S the S for other good will ^ > £ decreasing 5 of 37 price elasticity of demand measures the responsiveness of QD to a change in £ of a good 6 of 37 cross elasticity of demand measures responsiveness of QD to changes in £ of another good 7 of 37 Demand is price Elastic is the value of elasticity is >1 8 of 37 Demand is price Inlastic is the value of elasticity is <1 9 of 37 price elastic = % change £ leads to larger % change in QD 10 of 37 price inelastic = % change £ leads to smaller % change in QD 11 of 37 perfectly elastic / inelastic = 0 change in £ has no effect on demand 12 of 37 unitary = 1 ... % change = the same and opposite of & change in QD 13 of 37 downwards sloping demand curve is always negative because increase in one variable leads to decrease in another 14 of 37 substitutes have positive cross elasticity 15 of 37 compliments have negative cross elasticity 16 of 37 no relation have zero cross elasticity 17 of 37 supply is always positive 18 of 37 total expenditure = quantity purchased x price 19 of 37 normal good = income ^ demand ^ 20 of 37 inferior good = income ^ demand decreases 21 of 37 specialisation is production of limited range of goods by individual firm or country in co-op with others so a complete range of G&S are produced 22 of 37 Division of Labour is specialisation by individuals it ^ productivity by ^ in labour and capital productuity 23 of 37 buffer stock is a scheme organisation buys and sells in the open market so as to maintain a minimum price in the market for a product 24 of 37 normal good has positive income e of d 25 of 37 inferior good ha negative income e of d 26 of 37 diseconomies arise due to managment and geographical problems 27 of 37 complete market failure fail to lead to any production .. missing market exists 28 of 37 partial market failure under or over production of a good 29 of 37 private good - consumption by one leads to no consumption for another 30 of 37 public good non rival, non rejectable, non excludable 31 of 37 merit good underprovided by MM 32 of 37 demerit good over provided by MM 33 of 37 SC>PC neg externalities 34 of 37 SB>PB pos externlalities 35 of 37 monopoly one firm or supplier in the market 36 of 37 subsidy grant by government to increase production of particular GS 37 of 37
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