Somewhere that brings buyers and sellers together to exchange trade goods at agreed prices
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Define Supply
Number of sellers offering a good or service at a specific price at a specific time
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What is the key term that decribes when supply decreases?
Contraction
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What is the key term that describes when supply increases?
Extension
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What sort of movement does a change in price cause on the supply curve?
A movement along the supply curve
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What sort of movement does a non-price factor cause on the supply curve?
A Shift of the supply curve
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Give examples of factors that cause a shift for supply
Climate/weather, technology, cost of production, taxes and subsidies, cost of raw materials
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Define Demand
Number of buyers willing and able to purchase a good or service at a specific price at a specific time
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What is the key term that describes when demand increases?
Extension
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What is the key term that decribes when demand decreases?
Contraction
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What sort of movement does a change in price cause on the demand curve?
Price causes a movement along the curve
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What sort of movement does a non-price factor cause on the demand curve?
Prices cause a shift on the demand curve
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Give examples of factors that cause a shift in demand
complements/substitutes (price), advertising, taste/fashion, income, age, size of population, quality
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Define effective demand
when a desire to buy a product is backed up by an ability to pay for it
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Define Lltent Demand
willingness to buy among people for a good or service, but where consumers lack the purchasing power to be able to afford the product
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What is the equilibrium?
When demand and supply meet and balance each other out
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Define true efficiency
No over production and no unsold production
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Define sbstitue goods
A product that is similar to another product and cna be used as an alternative
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Define complent goods
A product that can be used alongside another product to increase its use
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Define Inferior good
A product that loses demand as disposable income increases
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Define normal good
A good thats demand increases as disposable income increases
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What is product orientation?
Designing a high quality/innovative product and then trying to fit it into a market and encourage customers to buy it. They only have contact with customers in the final stage
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What is market orientation?
Designing a product bases on what customers want by conducting market research.
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What are advantages of market orientation?
Decreases the risk of the consumer not liking the product, helps anticipate changes in the market, helps them compete with the competition
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What is market difference?
A change in the price after a stock has been bought of sold, necessitating the providing of more margin or permitting the withdrawal of margin in part or whole
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Other cards in this set
Card 2
Front
Define Supply
Back
Number of sellers offering a good or service at a specific price at a specific time
Card 3
Front
What is the key term that decribes when supply decreases?
Back
Card 4
Front
What is the key term that describes when supply increases?
Back
Card 5
Front
What sort of movement does a change in price cause on the supply curve?
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