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7 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Demand |
The willingness and ability of a consumer to purchase a good at any given price |
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Supply |
The number of goods or services a business is willing to sell an any given price |
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Factors that affect the supply and demand |
Price of substitutes Change in income Fashion, trends and tastes Advertising and branding External shocks: government, economic climate Seasonal
Change in cost of production New technology Weather Government |
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Price elasticity demand |
A change in price results in q greater change in demand
The responsiveness of demand in change of price |
Price which results in demand |
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Price inelastic of demand |
A change in price results in a smaller change in demand |
Completely same as elastic but lower demand |
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Income elastic demand |
Change in percentage in demand for a product results to greater percentage change in income
The responsiveness of demand to a change in income |
Learn it |
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Income inelastic demand |
Percentage change in demand results into a lower percentage change in income |
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