Keywords

Question 1

Competitive demand

Answer 1

The relationship between two goods that are substitutes

Question 2

Complements

Answer 2

Goods that are bought and consumed together such that an increase in the price of one will lead to a fall in demand for the other

Question 3

Composite demand

Answer 3

When a good is demand for more then one distinct purpose/use

Question 4

Consumer surplus

Answer 4

The difference between the market price and the maximum price that a consumer would be willing to pay

Question 5

Contraction of demand

Answer 5

A movement along the demand curve whereby an increase in price leads to a reduction in quantity demanded

Question 6

Contraction of supply

Answer 6

A movement along the supply curve whereby an fall in price leads to a reduction in quantity supplied

Question 7

Demand

Answer 7

The quantity of a good or service that people are willing to buy a given price in a given time period

Question 8

Demand curve

Answer 8

A graphical representation of the relationship between price and quantity demanded, usually downward sloping due to the law of demand

Question 9

Demand is price elastic

Answer 9

Quantity demanded changes more than proportionately to a change in price

Question 10

Demand is price inelastic

Answer 10

Quantity demanded changes less than proportionately to a change in price

Question 11

Diminishing marginal utility

Answer 11

The consumption of an additional do you know of a good yields, less utility, then the consumption of the previous unit

Question 12

Derived demand

Answer 12

When a coat is in the demand as a result of the demand for something else, usually because the first good can be used to produce the second

Question 13

Effective demand

Answer 13

The willingness to buy backed by the ability pay

Question 14

Electricity

Answer 14

Measure of the responsiveness of one variable to a change in the price of another

Question 15

Excess demand

Answer 15

Quantity demand did exceeds the quantity supplied, indicating that the current prices below the equilibrium price

Question 16

Excess supply

Answer 16

The quantity supplied exceeds the quantity demanded, indicating that the current price of equilibrium price

Question 17

Extension of demand

Answer 17

A movement along the demand curve whereby a decrease in price list to increase in quantity demand

Question 18

Extension of the supply

Answer 18

A movement how long does supply curve whereby increase in price causes an increase in quantity supplied?

Question 19

Income, electricity of demand

Answer 19

A measure of the responsiveness of the quantity demanded for one
Good to a change in income

Question 20

Inferior good

Answer 20

A good which demanded decreases as income rises and increases our income fall

Question 21

Joint demand

Answer 21

The relationship between two goods
that are compliment

Question 22

joint supply

Answer 22

When an increase in the supply of a good leads to an increase in the supply of another

Question 23

Law of demand

Answer 23

An increase in price will lead to a fall in quantity demanded. A fall in price will lead to an increase in quantity, demanded (ceteris Paribas.)

Question 24

Law of supply

Answer 24

An increase in price will lead to an increase in quantity supplied, and a decrease in price will lead to a decrease in quantity supplied

Question 25

Luxury good

Answer 25

A normal good for which demand is income elastic

Question 26

Market

Answer 26

The place where buyers and sellers of a good or service interacts for the purpose of exchange

Question 27

Market forces

Answer 27

The interaction of supply and demand to determine how come with a market (as opposed to the effect of intervention by the government)

Question 28

Market clearing price

Answer 28

The price of which nobody wishes to buy or sell, but cannot – there is a neither access demand, nor supply

Question 29

Market equilibrium

Answer 29

Situation whether the demand for and supply of a good are equal, such that there is no tendency for price and quantity to change (without a change in supply or demand)

Question 30

More than proportionate

Answer 30

Changing by a larger percentage

Question 31

Normal goods

Answer 31

A good for which demand increase as incomes rise and decreases as income fall

Question 32

Price electricity of supply

Answer 32

A measure of the responsiveness of the quantity demanded of a good to a change in his price

Question 33

Price electricity of supply

Answer 33

A measure of the responsiveness of quantity supplied to a change in price

Question 34

Producer surplus

Answer 34

Differences between the market price on the minimum price to sell, it would have been willing to sell at

Question 35

Substitute

Answer 35

I’ve got that can be used for the same purpose as another , such as one the increase in the price of one good will lead to a fall in the demand for the other

Question 36

Supply

Answer 36

The amount of a good or service that the sellers are willing and able to sell at a given price

Question 37

Supply curve

Answer 37

Graphical representation of the relationship between price and quantity supplied it is usually upward sloping due to the law of supply