Exam Revision Flashcards
State the Law of Demand
The law of demand states that when the price of a good or service will decrease, vice versa, ceteris paribus (all other factors remain unchanged
Define the term Values
Values are ideas and beliefs that effect a person’s decisions. Especially regarding choices they must make due to limited means
What are the limited means?
Time, money, skills
What are luxury goods?
Luxury goods are those that are superior to their substitutes . They’re relatively more expensive but considered better quality
Whats the opposite of luxury goods?
Inferior goods
State the Law of Supply
Law of Supply states that as consumers are willing and able to pay a higher price for a product or service, producers/suppliers are prepared to supply more of it, vice versa, ceteris paribus.
