chapter 3 supply and demand Flashcards
1
Q
demand
A
amount of a product that consumers are willing to purchase at any given price
2
Q
law of demand
A
higher price the lower the quantity demanded
3
Q
factors affect demand
A
incomes
taste and fashion
change in price
advertising
changes in population
gov legislation
4
Q
factors affect supply
A
change in costs
weather
intro of new tech
legislation
5
Q
price elasticity of demand
A
measures the responsiveness of demand to a change in price
6
Q
price elastic
A
change in price will cause change in demand
7
Q
price inelastic
A
change in price not much change in demand
8
Q
business make goods more inelastic
A
encourage consumer loyalty
reduce or restrict competition in the market
increase brand value
9
Q
income elasticity of demand
A
responsiveness of demand to changes in income
