Rational Decision Making
This is the economic assumption that consumers make decisions logically to maximize utility?
What is Rationality/ What is being rational?pg35
This term means - quantity of goods or services bought at any price over time
What is demand? pg 40
This type of good increases in demand as income rises?
What is a Normal Good? pg 60
the quantity of goods that sells are prepared to sell at any given price over a period of time.
What is supply? 67
The abbreviation for PED stands for?
What is Price Elasticity of Demand? pg 49
This branch of economics focuses on individual markets?
What is Microeconomics pg. 35
The quantity of goods or services that will be bought at any given price over a period of time.
What is Demand? pg 40
This type of good decreases in demand as income rises.
What is Inferior Good? pg 60
Factors other than price that lead to changes in supply and are associated with shifts in the supply curve.
What are conditions of supply? pg 73
This is the formula for?
% change in quantity demanded รท % change in price
What is PED? 49
This theory from the 1870s forms the basis of modern microeconomics?
What is Neo-Classical Theory? pg 35
This is the term used when demand rises as price falls?
What is Extension of Demand? 40
this measures the proportionate response of the quantity demanded of one good to the proportionate change in the price of another.
What is cross elasticity of demand? pg 61
goods that a supplier can easily produce as alternatives.
What are substitutes? 71
The responsiveness of demand is proportionally greater than the change in price
What is Elastic Demand? 57
These are the 2 theories that fuse together to form modern macroeconomics?
What are Neo-Classical and Keynesian Economics? pg 35
The term used when demand falls as price rises.
What is Contraction of Demand? 40
These goods can be replaced by another to satisfy a want.
What is substitutes? 63
a measure of responsiveness of quantity supplied to a change in price.
What is Price elasticity of supply? 73
The responsiveness of demand is proportionally less than the change in price
What is Inelastic? pg 57
This economist was the famous in the 1920s & 30s and greatly influenced macroeconomics?
Who is John Maynard Keynes? pg 35
This curve shows the relationship between price and demand?
What is Demand Curve? 40
Cars & fuel / Bread & butter are examples of.
What are complementary goods/ complements? 62
All factors of production involved in making a good are variable.
What is the long run? 73
The value of price elasticity of demand is 1. The responsiveness of demand is proportionally equal to the change in price.
What is Unitary Elasticity?57