microeconomics 0.0 / 5 ? EconomicsEverything i have learnt yetA2/A-levelAQA Created by: tkaysavCreated on: 07-11-19 14:53 demand definition the amount society is willing and able to buy at a set price at a given point in time 1 of 19 what does the demand curve show the relationship between price and quantity demanded 2 of 19 how do you calculate percentage change change in value / original value x100 3 of 19 price elasticity of demand (PED) % change in QD / % change in price 4 of 19 income elasticity of demand (YED) % change in QD / % change in income 5 of 19 cross elasticity of demand (XED) % change in QD of good X / % change in price of good Y 6 of 19 supply definition the amount of a good or service that producers are willing and able to sell at any given price 7 of 19 price elasticity of supply (PES) % change in QS / % change in price 8 of 19 market period all inputs in the production process are fixed and so is quantity of output so for a period of time you cant produce more even if you want to 9 of 19 Equilibrium is achieved when QD = QS 10 of 19 joint supply + supply of good A leads to + supply of good B , typically one good is the by product of the main 11 of 19 competing supply + in supply of good A leads to - in demand of good B , typically same factors of production are used for both 12 of 19 composite demand good has more than one use, demand for one usage + then supply - for other uses 13 of 19 derived demand good A is needed for production of good B, so demand for good A + when demand for good B + 14 of 19 double shift rule when two curves shift at the same time either price or quantity will be undetermined 15 of 19 bureacracy organisation that is complex with multilayered systems and processes 16 of 19 medium of exchange an intermediary between 2 parties when buying and selling e.g money 17 of 19 capital widening means employing more of the same 18 of 19 capital deepening means employing state of the art technology 19 of 19
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