Micro Examples: demand & supply shift Flashcards

1
Q

Examples of the basic economic problem

A

Water scarcity in India & SouthAfrica

Food scarcity worldwide

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Demand shift right

A

Spanish holidays

Commodities like oil

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Demand shift left

A
Student housing (UK)
Print newspapers 
Dining in (cheaper services like deliveroo)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Supply shift right

A
India Subsidies (rice, gas fuel)
Air travel
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Why subsidise items such as gas, fuel and rice

A

Decrease costs of production

Goods more affordable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

How does air travel make supply shift right?

A

More firms entering market

Increase supply, prices decrease

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Supply shift left

A

Fizzy drinks - sugar tax.
Increases costs of production
Increase prices
Supply less

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

PED inelastic

A
Cigarettes
alcohol 
sugary drinks 
fast food
(Addictive) 
public transport 
basic commodities (necessity goods, few substitutes )
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

PES inelastic

A

Basic commodities - hard to store, production lags
Gas/electricity
Housing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

XED complements

A

Printers and ink

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

XED substitutes

A

Fast food burgers

Smartphones

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

YED normal goods

A

Restaurant dining
Foreign holidays
Designer clothes
House renovations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

YED inferior goods

A

Own brand food

How well did you know this?
1
Not at all
2
3
4
5
Perfectly