Demand
WHAT IS THE LAW OF DEMAND
WHAT IS THIS LAW STATES THAT AS PRICE INCREASES, QUANTITY DEMANDED DECREASES AND AS PRICE DECREASES, QUANTITY DEMANDED INCREASES, CETERIS PARIBUS.
THIS MEASURES HOW RESPONSIVE QUANTITY DEMANDED IS TO A CHANGE IN PRICE
WHAT IS PRICE ELASTICITY OF DEMAND?
THIS LAW STATES THAT AS PRICE INCREASES, QUANTITY SUPPLIED INCREASES AND AS PRICE DECREASES, QUANTITY SUPPLIED DECREASES.
WHAT IS THE LAW OF SUPPLY
THIS MEASURES HOW RESPONSIVE QUANTITY SUPPLIED IS TO A CHANGE IN PRICE
WHAT IS PRICE ELASTICITY OF SUPPLY
NAME TWO FACTOS OTHER THAN PRICE THAT CAN CAUSE DEMAND TO INCREASE.
WHAT IS INCOME, CONSUMER TASTES, POPULATION, PRICE OF SUBSTITUTES, PRICE OF COMPLEMENTS, EXPECTATIONS
IF ELASTICITY S GREATER THAN 1, DEMAND IS DESCRIBED AS THIS.
WHAT IS ELASTIC DEMAND?
TWO FACTORS THAT CAN CAUSE SUPPLY TO INCREASE
WHAT ARE A DECREASE IN PRODUCTION COSTS, IMPROVEMENT IN TECHNOLOGY, SUBSIDIES, MORE SELLERS.
IF ELASTICITY OF SUPPLY IS LESS THAN 1, SUPPLY IS DESCRIBED AS THIS
WHAT IS INELASTIC SUPPLY
WHEN THE DEMAND CURVE SHIFTS TO THE RIGHT, WHAT HAPPENS TO DEMAND?
WHAT IS AN INCREASE IN DEMAND.
A PRODUCT WITH MANY SUBSTITUTES IS LIKELY TO HAVE THIS TYPE OF DEMAND.
WHAT IS ELASTIC DEMAND
WHEN SUPPLY DECREASES, THE SUPPLY CURVE SHIFTS IN THIS DIRECTION.
WHAT IS TO THE LEFT
GOODS THAT CAN BE PRODUCED QUICKLY USUALLY HAVE THIS TYPE OF SUPPLY ELASTICITY
WHAT IS ELASTIC SUPPLY
THIS TERMS DESCRIBES TWO GOODS WHERE AN INCREASE IN PRICE OF ONE LEADS TO AN INCREASE IN DEMAND FOR THE OTHER.
WHAT IS SUBSTITUTE GOODS.
THIS FORMULA IS USED TO CALCULATE PRICE ELASTICITY OF DEMAND
WHAT IS PERCENTAGE CHANGE IN QUANTITY DEMANDED DIVIDED BY PERCENTAGE CHANGE IN PRICE?
AN INCREASE IN THE PRICE OF FLOUR WILL AFFECT THE SUPPLY OF BREAD IN THIS WAY.
WHAT IS DECREASE IN SUPPLY
THE TIME PERIOD IS IMPORTANT IN DETERMINING THIS CONCEPT
WHAT IS ELASTICITY OF SUPPLY
IF CONSUMERS EXPECT PRICES TO RISE NEXT MONTH, DEMAND TODAY WILL LIKELY DO THIS.
WHAT IS INCREASE.
IF TOTAL REVENUE INCREASES WHEN PRICE INCREASES, DEMAND IS THIS.
WHAT IS INELASTIC DEMAND.
GOVERNMENT PAYMENTS TO PRODUCERS THAT ENCOURAGES PRODUCTION ARE CALLED
WHAT ARE SUBSIDIES
A PERFECTLY INELASTIC SUPPLY CURVE WOULD LOOK LIKE THIS LINE
WHAT IS A VERTICAL LINE