Theory of demand and supply

studied byStudied by 0 people
0.0(0)
learn
LearnA personalized and smart learning plan
exam
Practice TestTake a test on your terms and definitions
spaced repetition
Spaced RepetitionScientifically backed study method
heart puzzle
Matching GameHow quick can you match all your cards?
flashcards
FlashcardsStudy terms and definitions

1 / 18

encourage image

There's no tags or description

Looks like no one added any tags here yet for you.

19 Terms

1
Demand
The desire or will of any person or community for a commodity, considering both the desire to purchase and the ability to pay.
New cards
2
Direct Demand
Demand for a final object or commodity as opposed to demand for inputs or raw materials.
New cards
3
Price Demand
The quantities of a commodity that consumers would purchase at various prices, showing an inverse relationship between price and quantity demanded.
New cards
4
Income Demand
The quantities of goods and services purchased by consumers at various levels of income, reflecting a positive relationship for normal goods.
New cards
5
Cross Demand
Changes in the demand for one good due to changes in the price of another related good, encompassing both substitute and complementary goods.
New cards
6
Substitute Goods
Goods used in place of each other; for example, Fanta and Mirinda.
New cards
7
Complementary Goods
Goods that are used together to satisfy a want; for example, printers and ink cartridges.
New cards
8
Derived Demand
Demand for goods and services that are used to produce other goods and services.
New cards
9
Joint Demand
Demand for several goods and services with a single purpose.
New cards
10
Shift in Demand Curve
Change in the quantity of a commodity demanded at the same price due to changes in factors other than the price of the commodity.
New cards
11
Law of Demand
Describes the inverse relationship between price and quantity demanded, wherein price falls, demand increases and vice versa.
New cards
12
Giffen Goods
Goods whose quantity demanded increases as the price rises, violating the law of demand.
New cards
13
Market Equilibrium
A state where the quantity demanded equals the quantity supplied, resulting in no tendency for price to change.
New cards
14
Supply Function
Shows the relationship between supply and its determinants, typically indicating a positive relationship between price and quantity supplied.
New cards
15
Linear Supply Function
A supply function where both price and quantity supplied change at a constant rate.
New cards
16
Non-linear Supply Function
A supply function where the change in price and supply does not occur at a constant rate.
New cards
17
Determinants of Supply
Factors that determine the quantity of a good or service that producers are willing to sell, including price, technology, and number of firms.
New cards
18
Rightward Shift in Supply Curve
Indicates an increase in supply, meaning more is supplied at any given price.
New cards
19
Leftward Shift in Supply Curve
Indicates a decrease in supply, meaning less is supplied at any given price.
New cards

Explore top notes

note Note
studied byStudied by 18 people
899 days ago
5.0(1)
note Note
studied byStudied by 32 people
794 days ago
5.0(1)
note Note
studied byStudied by 1 person
28 days ago
5.0(1)
note Note
studied byStudied by 103 people
856 days ago
5.0(1)
note Note
studied byStudied by 3 people
761 days ago
5.0(1)
note Note
studied byStudied by 10 people
693 days ago
4.5(2)
note Note
studied byStudied by 39 people
953 days ago
5.0(1)
note Note
studied byStudied by 11 people
776 days ago
5.0(1)

Explore top flashcards

flashcards Flashcard (33)
studied byStudied by 3 people
792 days ago
5.0(1)
flashcards Flashcard (62)
studied byStudied by 5 people
765 days ago
5.0(1)
flashcards Flashcard (82)
studied byStudied by 10 people
56 days ago
5.0(1)
flashcards Flashcard (40)
studied byStudied by 5 people
171 days ago
5.0(1)
flashcards Flashcard (20)
studied byStudied by 115 people
507 days ago
5.0(1)
flashcards Flashcard (25)
studied byStudied by 12 people
468 days ago
5.0(1)
flashcards Flashcard (25)
studied byStudied by 2 people
661 days ago
5.0(1)
flashcards Flashcard (38)
studied byStudied by 38 people
8 days ago
5.0(1)
robot