1.2.1 - theme 1 Flashcards
(8 cards)
What are complementary goods?
Products consumed/used together, so they are purchased together.
E.g. printer and printer ink.
What is consumer income?
The money earned/received from work/investments.
What is demand?
The quantity of goods/services that a consumer is willing to buy at a given price and at a given time.
What are demographics?
The structure of the population such as age, gender and geographical distribution.
What are external shocks?
Factors beyond the control of a business.
What is seasonality?
When demand rises or falls at particular times of the year according to seasonal factors.
What are substitutes?
Goods that can be bought as an alternative to others, but perform the same function.
E.g. petrol car and electric car.
What are government subsidies?
A payment given to producers, usually to encourage production of a certain good.
