Competitive Markets 0.0 / 5 ? EconomicsCompetitive marketsA2/A-levelAQA Created by: meganjxmesCreated on: 12-05-18 13:36 People demand more if their real income increases NORMAL GOODS 1 of 27 People demand less in their real income increases INFERIOR GOODS 2 of 27 Demand for a good or a factor of production that is used in making another good or service DERIVED DEMAND 3 of 27 Goods that have more than use COMPOSITE DEMAND 4 of 27 Value of PED is greater than 1 - a % change in price will cause a larger % change in quantity demanded ELASTIC DEMAND 5 of 27 PED is infinity - demand will fall to 0 if there is any change in price PERFECTLY ELASTIC DEMAND 6 of 27 Value of PED is between 0 and 1 - a % change in price will cause a smaller % change in quantity demanded INELASTIC DEMAND 7 of 27 PED is 0 - change in price will have no effect on demand PERFECTLY INELASTIC DEMAND 8 of 27 PED is + or - 1 - % change in price is equal to the % change in demand UNIT ELASTIC DEMAND 9 of 27 Value of YED is greater than 1 INCOME ELASTIC 10 of 27 Value of YED is less than 1 INCOME INELASTIC 11 of 27 YED is 0 - demand remains constant with income PERFECTLY INELASTIC 12 of 27 XED is positive SUBSTITUTES 13 of 27 XED is negative COMPLEMENTS 14 of 27 production of one good or service involves the production of another - e.g. butane is a by product of producing petrol JOINT SUPPLY 15 of 27 PES is greater than 1 - a % change in price will cause a larger % change in supply ELEASTIC SUPPLY 16 of 27 PES is infinity - any fall in price will reduce supply to zero PERFECTLY ELASTIC SUPPLY 17 of 27 PES is between 0 and 1 - a % change in price will cause a smaller % change in supply INELASTIC SUPPLY 18 of 27 PES is 0 - change in price has no effect on supply PERFECTLY INELASTIC SUPPLY 19 of 27 PES is 1 - a % in price will have an equal % change in supply UNIT ELASTIC SUPPLY 20 of 27 state of a market when supply equals demand, the market clears EQUILIBRIUM 21 of 27 all other things remaining equal CETERIS PARIBUS 22 of 27 large number of buyers and sellers, no single producer or consumer can influence price or allocation of resources, consumers act rationally COMPETITIVE MARKET 23 of 27 incentive to firms, signalling device, ration scarce resources PRICE MECHANISM 24 of 27 difference between what a consumer is willing to pay and what they actually pay CONSUMER SURPLUS 25 of 27 difference between the price a producer is willing to supply a good at and the price they actually receive for it PRODUCER SURPLUS 26 of 27 a good which could be swapper for another of the same type without noticeable difference COMMODITY 27 of 27
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