Schedule 3 Flashcards
(9 cards)
1
Q
What is demand?
A
The amount society is willing + able to buy at a point in time
2
Q
Causes of change in demand
A
Substitutes and complementory goods
Income
Fashion
Branding + advertising
Seasons
External shocks
3
Q
What is supply?
A
The amount that producers are willing + able to sell at a given point in time
4
Q
Causes of changes in supply
A
Production cost
New technology
Indirect taxes
Government subsides
External shocks
5
Q
Price elastic
A
Large changes will occur
6
Q
Price inelastic
A
Unlikely to change
7
Q
PED =
A
% change in demand / % change in price
8
Q
YED =
A
% change in demand / % change in income
9
Q
Causes of changed YED
A
Necessity or luxury
Levels of income
Standard of living
