module 2 Flashcards
1
Q
market
A
group of sellers and its buyers
2
Q
demand
A
relationship between of a good and the quantity desired
3
Q
law of demand
A
consumers’ quantity demanded for a good rises and falls inverse to its price
4
Q
market demand
A
sum of quantity demanded at each price point by every consumer within a market
5
Q
non-price factors of demand
A
- number of buyers
- buyers income
- prices of related goods
- consumers’ taste
- buyer expectations
6
Q
normal goods
A
income increases, demand curve shifts right
7
Q
inferior good
A
income increases. demand curve shifts left
8
Q
substitute good
A
good that satisfies a similar need/desire
9
Q
complement good
A
demand for one goof is linked to another; go with each other
10
Q
law of supply
A
quantity the seller supplies falls in direct relation to its price
11
Q
non-price factors of supply
A
- number of sellers
- price of inputs & tech
- prices of related goods
- sellers’ expectations
12
Q
market clearing price
A
both buyers and sellers are happy – balances conflicting behaviours
13
Q
A
