Edexcel Economics 2. Supply and Price

Description

Term

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

What has a coefficient of zero?

A period of time during which at least one factor of production cannot be varied

A situation in which a borrower owes more on a loan than the value of the asset that guarantees the loan such as that owed on a mortgage after a fall in house prices

From which side of the commodity market does volatility arise?

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

A group of firms that cooperate in a market to control prices and limit competition

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

The way in which changes in demand and thus price motivate a supplier to change production for the purposes of profit

A decrease in supply coupled with a decrease in price

Description

Term

The ability of factors of production - usually labour - to switch between different occupations/uses as needed

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

What is the price elasticity of demand, and income elasticity of demand of the agricultural market?

A table showing variance in supply with changes in price

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

From which side of the agricultural market does volatility arise?

A situation in which prices fluctuate wildly over a short period of time

A natural resource that must be grown

Any factor besides price that can cause a change in supply and thus a shift in the supply curve

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