Quantity of a good/service desired by consumers with the means to afford it.
1 of 8
Productive Efficiency
The lowest point on the average cost curve.
2 of 8
Allocative Efficiency
Anywhere on the PPB when the production of one good cannot be increased without sacrificing the production of another.
3 of 8
Supply
The amount of a good/service that a supplier is willing to produce based on a profit incentive.
4 of 8
Complementary Good
A good with a negative cross elasticity of demand. One good generates demand for another, so as demand increases for one good, it will increase the demand for a complementary good too. Example: Tennis racquets and tennis balls
5 of 8
Substitute Goods
A good with a positive cross-elasticity of demand. Substitute goods are goods with the same purpose, meaning that an increase in price of one good will lead to an increased demand for another substitute good. e.g. soy/cow milk
6 of 8
Composite Demand
Demand for a good with multiple purposes. For example, oil. This will mean that an increase in the demand for one final-product will lead to a decrease in supply for another product.
7 of 8
Derived Demand
When demand for one good or service comes about as a result of demand for something else. e.g. demand for picks and shovels increasing in a gold rush (the demand for gold increases) NOT THE SAME AS COMPLEMENTARY GOODS
8 of 8
Other cards in this set
Card 2
Front
The lowest point on the average cost curve.
Back
Productive Efficiency
Card 3
Front
Anywhere on the PPB when the production of one good cannot be increased without sacrificing the production of another.
Back
Card 4
Front
The amount of a good/service that a supplier is willing to produce based on a profit incentive.
Back
Card 5
Front
A good with a negative cross elasticity of demand. One good generates demand for another, so as demand increases for one good, it will increase the demand for a complementary good too. Example: Tennis racquets and tennis balls
Comments
No comments have yet been made