Supply and Demand

?
Complementary goods
goods that are purchased together because they are consumed together
1 of 20
Demand
the quantity of a product bought at a given price over a given period of time
2 of 20
Demand curve
a line drawn on a graph that shows how much of a good will be bought at different prices
3 of 20
Inferior goods
goods for which demand will fall if income rises or rise if income falls
4 of 20
Normal goods
goods for which demand will rise if income rises or fall if income falls
5 of 20
Substitute goods
goods that can be bought aa an alternative to others, but perform the same function
6 of 20
Subsidy
a grant given to producers, usually to encourage produciton of a certain good
7 of 20
Supply
the amount of a product that suppliers make available to the market at any given price in a given period of time
8 of 20
Supply curve
a line drawn on a graph that shows how much of a good sellers are willing to supply at different prices
9 of 20
Equlilbruim price
the price where supply and demand are equal
10 of 20
Excess demand
the postion where demand is greater than supply at a given price and there are shortages in the market
11 of 20
Excess Supply
the postion where supply is greater than demand at a given price and there are unsold goods in the market
12 of 20
Total revenue
the amount of revenue generated from the sale of goods calculated by multiplying price by quanity in a given period of time
13 of 20
Price elastic demand
a change in price results in a greater change in demand
14 of 20
price elasticity of demand
the responsiveness of demand to a change in price
15 of 20
Prince inelastic demand
a change in price results in a propotionately smaller change in demand
16 of 20
Discretionary expenditure
non-essential speding or spending that is not automatic
17 of 20
Income elastic demand
the percentage change in demand for a product is propotionately greater than the percentage change in income
18 of 20
income elasticty of demand
the responsiveness of demand to a change in income
19 of 20
Income inelastic demand
where the percentage change in demand is proportionately less than the percentage change in income
20 of 20

Other cards in this set

Card 2

Front

Demand

Back

the quantity of a product bought at a given price over a given period of time

Card 3

Front

Demand curve

Back

Preview of the front of card 3

Card 4

Front

Inferior goods

Back

Preview of the front of card 4

Card 5

Front

Normal goods

Back

Preview of the front of card 5
View more cards

Comments

No comments have yet been made

Similar Business resources:

See all Business resources »See all Supply and Demand resources »