Buisness Flashcards
Supply
amount of a good producers are able and willing to sell at various prices during
a certain period
Demand
amount of product a consumer is willing and able to purchase at given prices
Profit
total revenue minus total cos
Elasticity
measures the responsiveness of consumers or companies to a change in price
Marginal Cost
change in total cost resulting from the output changing by one unit
Utility
level of satisfaction derived from consumption of a good
Marginal Utility
the change in total utility resulting from consumption of a good changing by one Unit
Equilibrium
the point at which the supply curve intersects the demand curve and the two are
equal
Substitutes
goods which can be used in place of one another
Complementary goods
goods which are consumed together; perfect compliments must be sold or
consumed together
Money income
the amount of money received during a specified period
Real income
your income measured in terms of how many goods you can purchase
Producer
an individual, business or organization which possesses a good which can be
further processed to create a more valuable final product
Raw good producer
an individual, business or organization which possess a product which has not
been processed at all
Manufacturer
an individual, business or organization which uses machines, tools and labor to
process a good into a final product
