Where buyers and sellers come together to carry out an economic transaction
What is market
100
Affects the demand curve and equilibrium
What is supply
100
It makes more people becomes suppliers
What is demand
100
a non priced determinant that may affect the shift in demand curve
What is complementary
100
An increase in income causes a fall in demand.
What is inferior good
200
The quantity of a good or service that consumers are willing and able to buy at a given price in a given time period
What is demand
200
the demand for a product may be affected by 5 determinants
What is the size of population, changes in age structure in population, changes in income distribution, government policy changes and seasonal changes
200
It states that if price of a product rises then the quantity supplyed rises
What is the law of supply
200
Tastes
Other related goods' prices
Expectations
Income
Size of the market
Special circumstances
What is non-price determinants of demand
200
An increase in income causes a bigger % increase in demand.
What is Luxury good
300
As the price of a product falls the quantity of the product will usually increase
What is the law of demand
300
When the price increases the demand also increases
What is a Veblen goods
300
If a product is not making money the goverment can give money to it
What is subsidising
300
Size of market
Technology
Other government regulations
Resource cost
Expectations
Subsidies and taxes
What is non-price determinants of supply?
300
An increase in income causes an increase in demand. It has a positive YED.
What is Normal Good
400
When the price of a product falls then people will have an increase in their "real income" whitch reflects the amount that people will buy. With this increase in real income the people will be likely to buy more of the product.
What is income effect
400
a tool to show the relationship between the demand of the product and the determinants of demand
What is linear demand functions
400
Only the price can make it
What is supply movement
400
Income
The price of other products
and tastes and preferences
What is the non-price determinats of demand
400
Goods which people may underestimate benefits of. Also often has positive externalities, e.g. education.
What is merit good
500
When the price of a product fall then the product will be more attractive to people than other product whose price have stayed unchanged and so the consumers will purchase more of the product.
What is substitution effect
500
decrease in the price of ink and cartridridges would increase the sale of printers
What is complementary goods
500
All changes but the price can lead to it
What is supply shift
500
Producers make decisions about what to suppy based on future prices