ROLE OF CONSUMERS Flashcards
1
Q
Demand
A
the quantity consumers are able and willing to buy at a certain price
2
Q
Market price
A
Created by the interaction of demand and supply, how much something costs (equilibrium price)
3
Q
Excess supply
A
Too much of a good in the market (price decrease)
4
Q
Excess demand
A
Too much demand for a good (prices upwards)
5
Q
Law of demand: centris paribus
A
A change in price will lead to a change in the quantity demanded
6
Q
Law of demand: negative relationship
A
Relationship between two variables is negative if the slope in a corresponding graph is negative
7
Q
Determinants of demand
A
Price
8
Q
Non-price determinants of demand (5)
A
Income of consumers, price of other goods (substitutes), changes in consumer preferences, change in consumer expectations, population
