Edexcel Economics 2. Supply and Price

Description

Term

What type of demand is demonstrated in the demand for financial assets (currency, shares, etc.)?

When a percentage change in price causes a greater percentage change in the quantity supplied

A product that could have been supplied using the same resources as are currently committed to another product

A market in which individual firms cannot influence the price of the good or service they are selling because of competition from other firms

What is the price elasticity of supply of the housing market?

The difference between the price a producer is willing to accept for a product and the price they actually receive

A natural resource that must be grown

The way in which price serves to allocate scarce resources when demand outstrips supply

From which side of the commodity market does volatility arise?

What has a coefficient of zero?

Description

Term

What is shown on a supply curve as the area above the supply curve and below the market price?

What is shown by the following calculation: (%∆QS)/(%∆P)?

An organisation that brings together factors of production in order to produce output

When a percentage change in price causes a change in the quantity supplied of the exact same percentage

A period of time during which all factors of production can be varied

What has a coefficient of one?

The only price at which demand and supply are equal thus meaning there is no shortage or surplus and all supply is demanded

Where the quantity demanded exceeds supply as a result of a price below equilibrium

The way in which changes in price, demand, or supply indicate from one side of the market to the other to adjust their levels of consumption or production

A sudden event which temporarily increases or decreases demand for a good or service