Demand and Supply Relationships (Grade 11 NSC Matric Economics): Flashcards
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Law of Demand: price & quantity demanded relationship
Law of Demand: price & quantity demanded relationship
Inverse: price ↑, quantity demanded ↓
Law of Supply: price & quantity supplied relationship
Law of Supply: price & quantity supplied relationship
Positive: price ↑, quantity supplied ↑
What demand represents
What demand represents
How much consumers willing & able to buy at different prices
Substitutes (demand)
Substitutes (demand)
Products that can replace each other for similar needs
Price of one good & demand for its substitute relationship
Price of one good & demand for its substitute relationship
Positive: if one price ↑, demand for substitute ↑
Complements (demand)
Complements (demand)
Products typically used together
Price of one good & demand for its complement relationship
Price of one good & demand for its complement relationship
Negative: if one price ↓, demand for complement ↑
Complements in supply
Complements in supply
Products produced together in same process (e.g., beef & leather)
Factor markets
Factor markets
Markets where resources (labour, land, capital) are traded
Goods markets & factor markets connection
Goods markets & factor markets connection
Changes in one market directly influence the other