market Flashcards
1
Q
demand factors
A
- price
- substitutes/complements
- changes in consumer incomes
- preferences
- demographics
- external shocks
- seasonality
- advertising and branding
2
Q
supply factors
A
- changes in production costs
- introduction of new tech
- indirect taxes (VAT)
- government subsidies (government offering things)
- external shocks
3
Q
increase / decrease in supply or demand
A
increase = line moves right decrease = line moves left
4
Q
inferior goods
A
demand declines when income rises
5
Q
normal good
A
experience an increase in demand due to rise in consumer incomes
6
Q
luxury good
A
demand increases more than as income rises
