Question | Answer |
Market Demand Curve | Shows that the quantities demanded by everyone who is interested in purchasing the product |
Individual Demand Curve | Graph Showing the quantiy demanded at each and every price that might prevail in the market |
Consumer Income | The change in a persons wages |
Consumer Tastes | Whether people want/like a product |
Complements | Use of one increases the use if the other |
Expectations | What consumers expect of a product |
Number of consumers | How many people can afford to buy products |
Elastic Demand | When a given change in price causes a relatively lower change in price causes a relatively change in quantity demanded |
Inelastic Demand | A given change in price causes a relatively smaller change in the quantity demanded |
Unit Elastic Demand | A given charge in price causes a proportiinal change in quantity demanded |
Determinants if Demand Elasticity | 1. Can purchases be developed 2.Are Adequate 3. Purchase Costliners |
Law of Demand | The quantity demanded varies inversly with its price |
Law of Supply | The principle that suppliers will normally offer more for sale at high prices and less at lower prices |
Cost of Resources | How much it costs to produce |
Productivity | How much can be made |
Technology | How easily it can be made |
Taxes and Subsidies | How much extra the pay for licenses |
Expectations | What they expect to happen |
Number of Sellers | How many people can sell a product |
Elastic Supply | Type of Elasticity where the percentasge charge in the variable causes a less than proportionate change in the dependent variable |
Inelastic Type of Elasticity | Type of Elasticity where the percentage change in the independent variable(causes a less) that proportionate change in the dependent variable |
Unit Elastic Suppy | Elasticity where a charge in the independent variaable generatesa a proportional change of the dependent variable |
Stage 1 production | Increasing marginal returns |
Staage 2 Production | Diminishing returns |
Stage 3 Production | Negative marginal returns |
Market Supply Curve | quantities offered at various prices by firms that take large in a elastic |
Determinants of Supply | It depends on the nature of its production, if adjustments are longer it is inelastic |
Fixed Costs | Cost incurred even when tere is little or no activity |
Variable Costs | Costs That Change when the busines's tae of operation or output changes |
E commerce | online store |
Total Revennue | All the revenue that a business receives |
MArginal Revenue | the extra revenue a business receives from the produciton nd sale of addition to all units of output |
Marginal Analysis | A type of decision making that compares the extra benefits of an action to the extra costs of taking the action |