Microeconomic Key Definitions

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Created by: alishagrace9
Created on: 14-02-15 19:20

Black market

An illegal market where products are bought and sold at unofficial prices.

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Inferior goods

As income rises, demand for this type of good falls.

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Contestable market

A market that has no, or limited barriers to entry.

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Scarcity

Where demand exceeds supply at a zero price point.

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Market equilibrium

Where demand equals supply.

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Price discrimination

Charging different prices to different consumers for the same good or service.

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Complementary goods

Two goods in joint demand.

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Fixed costs

Costs that do not change with firms output.

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Sunk costs

Costs that cannot be recovered if a firm decides to leave an industry.

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Joint supply

Increase in supply of one good leads to increased supply of another

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Other cards in this set

Card 2

Front

As income rises, demand for this type of good falls.

Back

Inferior goods

Card 3

Front

A market that has no, or limited barriers to entry.

Back

Card 4

Front

Where demand exceeds supply at a zero price point.

Back

Card 5

Front

Where demand equals supply.

Back

View more cards

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Microeconomic Key Definitions