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9 Cards in this Set
- Front
- Back
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Market |
Whenever buyers and sellers get together for the purpose of trade or exchange. |
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Demand |
Demand refers to the quantities of a product that purchasers are willing and able to buy at various prices per period of time, ceteris paribus. |
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Consumer surplus |
The difference between the value a consumer places on units consumed/willing to pay and the payment actually needed to make a purchase of a commodity. It is represented by the area under the demand curve and above the price line. |
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Shifts in demand curve |
Changes in factors other than pricr cab be illustrated by shifts in the demand curve. A rightward shift indicates an increase in demand whereas a leftward shift indicates a decrease in demand. |
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Change in demand |
Change in demand occurs where there is a shift in the demand curve. |
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Change in quantity demanded |
Occurs when there is a movement along the curve. |
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8 Factors affecting demand. |
The purchasing power of income after tax The availability of loans/credit and the interest rate. Attitude towards the product. Changes in the price of substitutes and compliments. Unemployment. Weather. Advertising. Change in population. |
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Normal goods |
Normal goods are those goods which have a postive relationship with income and product demand. |
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Inferior goods |
Inferior goods are those goods which have a negative relationshio with income and product demand. |
