Equlibrium Price Detention Flashcards
1
Q
axis on graph for education
A
Pe Qe
2
Q
price mechanism
A
the interaction of supply and demand to determine price
3
Q
3 functions of price mechanism
A
signalling
inecentiving
rationing
4
Q
joint supply
A
when the production of one good increases the supping of another good which uses the by products
5
Q
joint demand
A
complementary goods
goods which are brought together
negative XED
6
Q
Competing demand
A
goods which are substitutes
(samsung and iPhone)
compete with each other increased XED
7
Q
composite demand
A
good is demanded for more than 1 USD
aluminum cans and cars
8
Q
derived demand
A
demand for factors of production used to produce a good
labour commodities
