Module 6 Flashcards
1
Q
Complementary products
A
Shift curve to the left
2
Q
Move along demand curve
A
Only way is to change the price of the good
3
Q
Elastic demand
A
More substitutes for a good
4
Q
Inelastic
A
Proportion of consumer income spent on good is small
5
Q
CPED
A
Negative for complementary goods
6
Q
PED
A
Likely to change with the length of time since price change
7
Q
Books
A
Inferior good
Income elasticity is negative
8
Q
Theory of supply
A
Quantity of good suppliers are able to sell with the aim of maximising profits
9
Q
Market mechanism
A
Lower selling price than equilibrium = low stock levels
10
Q
Factors of production
A
Land
Labour
Capital
Enterprise
11
Q
Marginal revenue
A
Increase in total revenue from selling one more unit
