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18 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Demand |
The amount of a product or service that consumers are willing and able to buy at a given price |
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Supply |
The quantity of a good of a service that a producer is willing and able to make available on the market |
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Surplus |
Where supply exceeds demand then there is a surplus |
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Shortage |
When there is more demand than there is supply |
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PED |
Price elasticity of demand |
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PED Formula |
% change in quality demanded Divided by % change in price |
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Change in price formula |
Price new - price old Divided by Price old X 100 |
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Competitive pricing |
Products are priced closely to competitors products |
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Skimming pricing |
Products that are unique or first in a market have a high price |
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Total revenue |
Quantity X price |
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Elastic demand values |
Value will be more than 1 |
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Inelastic demand values |
Value will be between 0-1 |
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Elastic demand |
Price changes, so does the demand |
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Inelastic demand |
Price changes, demand stays the same |
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Normal goods |
A good is a normal when consumers demand more E.g. Walkers crisps, Heinz products |
E.g. Walkers crisps, Heinz products
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Inferior goods |
These are products where demand decreases as income increases E.g. Tesco value products, Asda own brand |
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Luxury goods |
These are products that Cause an increase income which causes a larger increase in demand E.g. Lamborghini, designer brands |
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YED Formula |
% change in quantity demanded Divided by % change in income |
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