Midyear

Demand

100

Law of Demand

-When the price of the good falls, quantity demanded rises

-When the price of a good rises, quantity demanded falls

200

Name 3 out of the 7 non-price determinants of demand

income in the case of normal goods, income in the case of inferior goods, preferences and taste, price of substitute goods, price of complementary goods, number of consumers, consumer expectations

300

All other things (apart from price) that can affect demand are assumed to be constant and unchanging

Ceteris paribus

400

Satisfaction a consumer gains by consuming something

Utility

Supply

100

Law of Supply

-As price goes up, the quantity supplied also goes up

-As price goes down, the quantity supplied also goes down

200

Name 4 out of the 9 non-price determinants of supply

costs of factors of production, technology, prices of competitive supply goods, prices of joint supply goods, producer price expectations, taxes, subsidies, number of firms, supply shocks

Elasticity

100

Name the four types of elasticity

PED, PES, YED, XED

200

Name 3 determinants of PED

number and closeness of substitutes, necessity vs. luxury, narrow/broad market, proportion of income spent, length of time consumers have to respond

300

Name 3 determinants of PES

time horizon, spare capacity, stock/inventory, mobility of factor of production, rate at which costs increase

400

Name the parts of the Engel Curve

luxury, necessity, inferior goods

Miscellaneous

100

When the market price is such that quantity supplied equals quantity demanded

Equilibrium

200

When the price is higher than the equilibrium price (there is excess supply)

Surplus

General econ terms

200

A group of buyers and sellers of a particular good

Market

300

Describes and explains what is true/justified

Positive economics