Demand and Supply Flashcards
Distribution of goods and services from the producer down to the consumer.
Marketing
The delivery of customer satisfaction at a profit.
Marketing
The activity, set of institutions, and processes for creating, communicating, delivering, and EXCHANGING offerings that have value for customers, clients, partners, and society at large.
Marketing
The process of actual buying and selling in the market place.
Trading
Group of Buyers and Sellers.
Market
A place or location which may be local, national, or international.
Market
Law of Demand
The quantity demanded of a good falls when the price of the good rises.
Law of Supply
The quantity supplied of a good rises when the price of the good rises.
A schedule or a curve showing the various amounts of a product CONSUMERS are willing and able to buy at each of a series of possible prices during a specified period of time.
Demand
Non-Price Determinants of Demand
Number of buyers, Tastes/preference, Income, Prices of related goods, Expectations
A schedule or curve showing the various amounts of a product that PRODUCERS are willing and able to make available for sale at each of a series of possible prices during a specific period.
Supply
Non-Price Determinants of Supply
Number of sellers, Resource prices, Technology, Taxes and subsidies, Prices of related goods, Expectations
When buyers and suppliers reach an agreement about the price.
Equilibrium (Market Price)
Demand and Supply meet in the market place.
Equilibrium (Market Price)
SIRA (Market Mechanism)
Signal, Incentives, Rationing, Allocate
Indicates that a lower price increases the purchasing power of a buyer’s money income, enabling the buyer to purchase more of the product than before.
Income Effect
Indicates that at a lower price buyers have the incentive to substitute what is now a less expensive product for similar products that are now relatively more expensive.
Substitution Effect
Products that can be used in place of another.
Substitute Goods
Products that is used together with another good.
Complementary Goods
Is a shift of the demand curve to the right (increase in demand) or to the left (a decrease in demand).
Change in Demand
Is the movement from one point to another on a fixed demand curve.
Change in Quantity Demanded
A shift in the supply curve.
(increase shifts to right and decrease to left).
Change in Supply
Is the movement from one point to another on a fixed supply curve.
Change in Quantity Supplied