The Market as a Phenomenon (Grade 10 NSC Matric Economics): Flashcards
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Practise the cards
10 cards from this deck
Market
Market
Where buyers & sellers meet to exchange goods/services for money
3 essential requirements for a market
3 essential requirements for a market
Sellers, buyers, meeting place
Price
Price
Amount producers willing to supply/sell at a specific cost
Value in use
Value in use
Things needed/valuable but don't cost money (e.g. air, sunlight)
Value in exchange
Value in exchange
Products people pay money for; essentially the price
Utility
Utility
Degree of satisfaction/happiness from using a product/service
Marginal utility
Marginal utility
Extra satisfaction from purchasing one additional unit
Diminishing marginal utility
Diminishing marginal utility
Each extra unit gives less satisfaction than the previous one
Effect of high utility on demand
Effect of high utility on demand
Higher utility leads to greater demand
High utility + scarcity effect on price
High utility + scarcity effect on price
Results in higher price