the market key words and ideas Flashcards
demand
measures the level of interest customers have for a product and this must be backed up by the ability to pay
complementary goods
bought in conjunction with eachother
inferior goods
goods where sales fall when consumers are better off but rise when consumers are struggling financially
luxury goods
goods where sales rise rapidly when consumers are better off but fall when struggling financially
normal goods
goods where sales move inline with consumer incomes
seasonal variations
change in a variable that is related to the seasons
substitutes
products or services in competition with each other so customers will substitute one for the other
supply
the quantity of a product that producers are able to deliver within a specific time period
market price
supply = demand
supply chain
the whole path from suppliers of raw materials through production and storage on to customer delivery
supply curve
a line showing the quantity of goods a firm wants to sell at different price levels
equilibrium
the point where there is a balance between supply and demand making the price stable
commodity markets
cover undifferentiated products
demand curve
a line showing the demand for a product at different prices
external constraint
something outside the firms control that can prevent it from achieving its objectives
