types of demand and Supply Flashcards
1
Q
Derived Demand
A
demand for one good is linked to the demand for a similar good
for example bricks and houses
2
Q
Joint demand
A
complements
3
Q
Competitive demand
A
Substitutes
4
Q
Marginal utility
A
amount of satisfaction gained from consuming an extra unit of the good
5
Q
Consumer surplus
A
the difference between price consumers are willing and able to pay and the actual price they pay
6
Q
Joint supply
A
When the increase in supply in one good causes the increase in supply of another
7
Q
Producer surplus
A
the price producers are willing to charge and the price they actually charge
the private benefit gained by producers to cover CoP
8
Q
Where is producer surplus on a graph
A
above supply curve and below price line
9
Q
Why is supply unstable
A
weather conditions
natural disasters
information failure
