Price Determination in a Competitive Market (AQA A-Level Economics): Flashcards
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10 cards from this deck
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Practise the cards
10 cards from this deck
Effective demand
Effective demand
Desire for a good backed by ability to pay
Law of demand
Law of demand
As price falls, quantity demanded rises; vice versa
What causes movement along demand curve?
What causes movement along demand curve?
Change in the good's own price
What causes shift of demand curve?
What causes shift of demand curve?
Change in factors other than price
Substitute goods
Substitute goods
Alternative products for same purpose (e.g., tea & coffee)
Complementary goods
Complementary goods
Products consumed together (e.g., cars & petrol)
Normal good
Normal good
Demand increases as income rises
Inferior good
Inferior good
Demand decreases as income rises
Market demand
Market demand
Total quantity all consumers want to buy at different prices
Ceteris paribus
Ceteris paribus
'Other things being equal' assumption