Demand-Competition Flashcards

1
Q

What is demand

A

Amount of G/S buyers are willing to buy for certain price

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2
Q

What are the six factors that can influence a demand

A

1)price
2)income
3)price of substitutes/complimentary goods
4)Preferences
5)Number of buyers
6)Another factors

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3
Q

What is substitute and what is complimentary good

A

Substitute goods that can be substituted for a lower price

Complementary goods use them together” car insurance highway fuel”

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4
Q

Who is who in demand

A

a) market of production factors
-demand created by company

b)market of G/S
-demand created by household

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5
Q

What does the demand graph show

A

Show the relationship between the price and quantity demanded

Price goes ⬆️  when demand goes down

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6
Q

Types of demand

A

1)Individual-1person buying 1 product
2)Market-All willing to buy 1 product
3)Aggregate-all people all products

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7
Q

What is supply

A

Amount of GS that producers are willing to sell for certain price

Most amount for ⬆️ price

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8
Q

Factors that can influence supply

A

Price

Price of production factors

Price of alternative goods

Organization of market

Technology used

Another factors Texas weather

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9
Q

Who is who in supply

A

a)Market of Production factors-supply created by household

b)Market of GS supply-created by Company

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10
Q

Supply Graph

A

Shows the relationship between the price and quantity supplied

Price goes up supply goes that up

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11
Q

Types of supply
C=company

A

1)Individual-Company selling 1 product
2)Market-all C Supplying 1 product
3)Aggregate-all C supply all G/S

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12
Q

What is the market
balance = equilibrium

A

Situation when everything what is produced is sold and each buyer is satisfied

Demand = Supply

Only during short period 

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13
Q

What is balanced price/quantity

A

Price with which our buyers and sellers satisfied

Balanced quantity means the same amount which is demanded and supplied

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14
Q

Market imbalance is created on the market in two cases

A

1)price is higher than ideal balanced price > surplus (not all goods are sold)

2) Brass is lower than ideal balanced price > shortage

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15
Q

What is a competition

A

Fight on the market
Occurs because of various interests

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16
Q

Interests of subject on the market

A

Household prefer to buy the most for lower price

companies prefer to sell the most for higher price
maximize profit increase amount market share upgrade image