Mr McTernan Flashcards
what is demand?
the AMOUNT of a product that consumers are WILLING and ABLE to buy at a particular price over a given period of time
what is price
the amount of money a business receives for selling an individual good or service.
what is individual demand
the quantity of a good or service demanded by one individual at different prices, given income and other factors
what is market demand?
the total quantity of a good demanded by ALL individuals at each price.
what is market share?
the amount one company sells out of the total market
what does a demand curve show?
the demand curve for a product shows the relationship between price and quantity demanded for that product over a range of different prices.
what is ceteris paribus?
assuming that “everything else remains equal”
what are the 3 determinants of demand?
a change in income, a change in the price of other goods, tastes and fashions may have changed.
what is DERIVED DEMAND?
when a good or factor of production (such as labour) is demanded for another reason.
what is composite demand?
a good which is demanded for multiple different uses.
what is joint demand?
goods bought together (eg printer and ink)
what is consumer surplus?
the extra amount a consumer is willing to pay for a product above the price they actually do pay.
what is producer surplus?
the difference between what producers are willing and able to supply a good for and the price they actually receive.
what are the 4 types of elasticity.?
price elasticity of demand - PeD
price elasticity of supply- PeS
cross elasticity or demand - XeD
income elasticity of demand - YeD
what is the equation for PeD?
%change in quantity demanded/
% change in price
