Supply, Demand & Elasticity

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  • Created by: frankishb
  • Created on: 10-12-15 11:59
Supply
Is the quantity of a good or service that a producer is willing and able to supply onto the market.
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Demand
Is the quantity that customers are willing and able to buy at a given price at a given time.
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Equilibrium
Is the balance between quantity demanded and quantity supplied.
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Elasticity
Measures the responsiveness of supply & demand to a change in a relevant variable (Price/Income) AFFECTED BY CHANGE
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Inelasticity
Measures the responsiveness of supply & demand to a change in a relevant variable (Price/Income) UNAFFECTED BY CHANGE
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Elasticity (Luxury)
Examples; Expensive holidays, Branded goods and Luxury expenses
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Inelasticity (Necessity)
Examples; Groceries, Electric, Heating (Unavoidable living expenses)
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Other cards in this set

Card 2

Front

Is the quantity that customers are willing and able to buy at a given price at a given time.

Back

Demand

Card 3

Front

Is the balance between quantity demanded and quantity supplied.

Back

Preview of the back of card 3

Card 4

Front

Measures the responsiveness of supply & demand to a change in a relevant variable (Price/Income) AFFECTED BY CHANGE

Back

Preview of the back of card 4

Card 5

Front

Measures the responsiveness of supply & demand to a change in a relevant variable (Price/Income) UNAFFECTED BY CHANGE

Back

Preview of the back of card 5
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