Theme 1 - 2.1 and 1.2.2 Supply and Demand Flashcards
Whats a substitute good ?
- Products that can be used in place of another.
Whats a complementary good ?
- Products that are used with each other.
What are demographics ?
Statistical data relating to population eg age.
What are normal goods ?
Goods that customers buy more of if income increases.
What are inferior goods ?
Goods the customers buy less of of income increases.
What is demand ?
The quantity of a good or service that a consumer is willing and able to buy at a given price in a given time.
What are the determinants of demand ?
- Price of good or service .
- Price or substitute.
- Price of complementary goods.
- Income
- Changes in consumers tastes
What is supply ?
The quantity of a good or service that a producer is willing and able to supply at a given time period.
What is productivity ?
The rate at which a good or service is produced.
What is an external shock ?
An unexpected event that changes the economies whole entire direction e.g COVID
Whats automation ?
A process in where production is controlled by automatic means.
What is mechanisation ?
Method of controlling processes through machinery.
What’s an indirect tax ?
A tax levied on products or services before they reach the customer.
What is a government subsidy ?
A grant from the government to encourage the supply for a good or service.
