how markets work

Question 1

utility

Answer 1

Utility

Satisfaction that consumers get from the goods and services that they buy

Question 2

demand

Answer 2

Demand

The amount of a product that consumers are willing and able to purchase at any given price

Question 3

pasific

Answer 3

PASIFIC

Non-price factors that influence demand

Question 4

pintswc

Answer 4

PINTSWC

Non-price factors that influence Supply

Question 5

price elasticity of demand

Answer 5

PED-

(%ΔQD / %ΔP) PED value is always negative

Question 6

ped<1 (ped is less that 1)

Answer 6

PED <1

Price inelastic. A change in price results in a proportionately smaller
change in demand

Question 7

ped>1 (ped is more than 1)

Answer 7

PED > 1

Price elastic. A change in price results in a proportionately greater
change in demand

Question 8

factors that influence ped

Answer 8

Factors
Influencing
PED

Time, Competition for the same product, Branding, the proportion of
income spent on a product, Product types vs the product of an individual business, habit–forming nature of the good.

Question 9

factors influencing income elasticity of demand (YED)

Answer 9

Factors
influencing
YED

Necessities ( basic goods that a customer needs to buy) & Luxury (goods
that customers like to buy if they can afford to)