Supply And Demand Flashcards
5 factors that influence the demand of goods
Taste and preferences of the consumer Income of people Changes in prices of related products Advertisement expenditures The number of consumers in the market
5 factors that influence the supply of goods
Prices Cost of production Technology Natural conditions Government supplies
anyplace where buyers and sellers meet to exchange goods and services
Markets
combination of quantities that someone would be willing and able to buy over a range of possible prices at a given moment
Demand
rule stating that more will be demanded at lower prices and less at higher prices
Law of Demand
The amount of a product a producer or seller would be willing to offer for sale at all possible prices in a market at a given point in time.
Supply
The principle that more will be offered for sale at higher prices than at lower prices
Law of Supply
The ability to change or adapt
Elasticity
the responsiveness of quantity supplied to a change in price
Elasticity of Supply
something that motivates you
Incentives
a government payment to encourage or protect a certain economic activity
Subsidy
costs of production that do not change when output changes
Fixed cost
production costs that vary as output changes;
Variable cost
a broad category of variable costs that include interest, rent, taxes, and exclusive salaries.
Overhead
the sum of variable costs plus fixed costs: all costs
Total cost
the extra costs if producing one additional unit of production
Marginal cost
average price that every unit of output sells for
Average revenue
the total amount earned by a company from the sales of its products.
Total revenue
extra revenue from the sale of one additional unit of output
Marginal revenue
production level where the total cost equals total revenue.
Break- even point
