Help
Options
Term
Snob Good
click to flip
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't know
Term
Law of Equi-Marginal returns / Equi- Marginal Principle
Remaining cards (23)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Demand and Supply
Calasanctius
| Term | Definition |
|---|---|
| Snob Good | A rise in price of this good will cause an increase in quantity demanded and vice-versa |
| Law of Equi-Marginal returns / Equi- Marginal Principle | Consumers spend their income where the marginal utility to price is the same for all goods |
| Lists the different quantities of a good that all consumers in the market are prepared to buy at each price. It is derived by adding together all the individual demand schedules for the good | Market Demand Schedule |
| Real Income | The purchasing power of a person's money, income adjusted for inflation |
| Giffen Good | A good for which price rises quantity demanded rises |
| If the price rises , quantity demanded falls and vice-versa | Law of Demand |
| Substitution effect | If the price of a good falls , the consumer is likely to buy more of it because it is now cheaper relative to other goods |
| It causes a movement along a demand curve | Rise in the price of the good /service |
| Individual demand schedule | A table showing the different quantities of a good a consumer is prepared to buy at each price |
| Factors affecting the demand for a good which shifts the demand curve inwards or outwards | Price of other goods, Income,Tastes ,Govt, Expectations of future prices, Unplanned factors |
| Marginal Utility | The extra satisfaction a consumer enjoys from consuming an extra unit of a good |
| Normal Good | A good with a positive income effect Y increases , D increases |
| Transfer Payments (social welfare) | Payments to individuals where no FOP is supplied in return |
| Inferior goods | A good with negative income effect As Income increases , Demand decreases |
| Substitute goods | Good that satisfy the same needs , they are similar |
| Income effect | If the price of a good falls the real income of the consumer is increased, allowing more of the good to be purchased |
| Complementary goods | Goods that are in joint demand , the use of one involves the use of the other |
| Demand curve | A graph showing the different quantities of a good that an individual consumer is prepared to buy at each price |
| Effective demand | Consumers must be willing to buy AND be capable of paying the price set by the supplier |
| Demand | The amount consumers desire to purchase at various prices at any given time |
| Consumer Surplus | The difference between the highest price a consumer is willing to and what they actually pay for a good rather than do without it |
| Producer Surplus | The difference between the lowest price a producer is willing to accept for a good and the price they actually receive |
| Law of supply | If the price rises quantity supplied rises |
| Factors affecting the supply of a good which may shift the demand curve inwards or outwards | Price of related goods, cost of production, unplanned factors, state of technology |
Created by:
Calasanctius Eco
Popular Economics sets