Demand & Supply 1.2 Flashcards
1
Q
Demand def.
A
The quantity of a good that consumers will buy at any given price or time
2
Q
Acronym for Shifts in Demand
A
PIRATES
Population Income Related goods Advertising Tastes/fashion Expectation Seasons
3
Q
Utility
A
The satisfaction we derive from consuming a good
4
Q
Acronym for Shifts in Supply
A
ROTTEN
Resource / Input Costs (production costs rise = fall in supply)
Other goods price (compliments decrease in price)
Taxes, subsidies & gov. regulations
Technology (better tech lowers production costs)
Expectations of producer (expecting more demand)
Number of competitive firms
