Booklet 2 Flashcards
1
Q
What are the factors that affect the demand curve ?
A
-Subsitute goods
-Expectation about the future price movements
-population increase
-tastes / customer preferences
-income of consumers
-Complementary goods
-changing price / availability for complementary good
2
Q
How to calculate revenue?
A
Price x quantity = revenue
3
Q
Example of complementary goods ?
A
And increase of buying pencils may mean an increase in Purchasing sharpeners
4
Q
Where the demand and supply lines meet what does that mean ?
A
Market price
(The price it would be sold for )
5
Q
Under the lines?
A
Excess demand
6
Q
Over the equilibrium ?
A
Excess supply
7
Q
Effective demand
A
Willingness to buy it
8
Q
Demand
A
Quality of good / service
9
Q
What is marginal utility
A
One extra
10
Q
What is total utility
A
Satisfaction
