Demand
The law of demand states that as price increases, this happens to quantity demanded.
Quantity demanded falls pg. 31
This term states that as price increases, the quantity supplied increases
What is Supply? Pg. 36
The point where demand and supply meet is called this.
What is Equilibrium. Pg. 41
Price elasticity of demand measures the responsiveness of demand to changes in this.
What is Price? Pg. 47
Income elasticity of demand measures the responsiveness of demand to changes in this.
What is Income? pg.52
a line drawn on a graph that shows how much of a product will be bought at different prices.
Demand curve pg. 31
The graphical representation of supply is called this.
What is a Supply curve? Pg 36
If demand exceeds supply, the market experiences this.
What is Shortage/excess demand? Pg. 43
If PED > 1, demand is described as this.
What is Elastic? Pg. 47
Necessities & Luxuries
What are factors influencing YED? Pg.53
Income, tastes/preferences, demographics
What are factors other than price that affect demand. Pg. 32-33
These two factors, other than price, affect supply.
What are costs of production and technology. Pg. 37
If supply exceeds demand, the market experiences this.
What is Surplus/excess supply? Pg 44
If PED < 1, demand is described as this.
What is Inelastic pg. 47
Goods for which demand will fall if income rises or rise if income falls
What is an inferior good? Pg. 54
When demand for one good increases as the price of another falls, the goods are called this.
Complements pg. 32
When the government imposes a tax, this happens to supply.
What is a supply decrease (shifts left) pg. 39
Another term for equilibrium price.
What is market clearing price? Pg. 41
Time, Competition for the same product, Branding.
What are factors influencing PED? Pg. 48
Goods for which demand will rise if income rises or fall if income falls
what are normal goods? Pg. 54
When demand for one good increases as the price of another rises, the goods are called this.
Substitutes pg.32
When the government offers a subsidy, this happens to supply.
what is a supply increase (shifts right)? Pg. 39
The amount of revenue generated from the sale of goods calculated by multiplying price by quantity in a given period of time.
What is total revenue/total expenditure. Pg. 44
The formula for PED is percentage change in quantity demanded divided by this.
What is Percentage change in price? Pg 47
A rise in income leading to greater demand for designer clothing is an example of this type of YED.
Positive (luxury)