Unit 1 Flashcards
What three factors affect PES
The amount of stock available
The time it takes to produce
The skill it takes to produce
What five factors affect PED
The number of substitutes
The time the elasticity changes over
The % of income it takes up
How addictive it is to consume
Whether it is luxury or necessary
What has an xed of positive
Substitutes
What has xed of 0
Goods with no relation
What has an xed of negative
Compliments
What may PED data be wrong
Because some variables may have changed from old figures
Consumers may not answer surveys correctly
What is a normal good, give examples
A good with positive yed
Fresh veg
Milk
Utilities
What is a superior good, give examples
Good with a negative yed
Fine wine.
Expensive items
What is an inferior good, give examples
Goods with a postive yed, that are demanded in recession
Pound land
Charity
Name five factors that affect demand
Price of other products
Weather//seasons
Income
Future prices
Demographic changes
Name four factors that affect supply
Technology to reduce cost
Indirect taxes reduce to increase S
Cost reduce to increase S
other products price increase will reduce supply if they use same resources
What is a Veblen good
A good that demand increases with price, as by nature it is expensive and ostentatious
What is a giffin good?
A good that demand increases with price.
E.g: rice with meat
What does a demand schedule show
How much consumers are willing to demand at different prices
What does a supply schedule show
How much producers are willing to supply at each price
