Edexcel Economics 2. Supply and Price

Description

Term

The ability of factors of production - usually labour - to change locations depending on requirement

The total amount of a product that all firms are prepared and able to supply at any given price

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

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

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

A part of a public limited company that forms a unit of ownership and is offered for sale by the company so as to raise capital for the said company, which is usually bought so as to provide a dividend to the holder

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

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

When a percentage change in price causes an infinite change in the quantity supplied

The positive relationship between supply and price

Description

Term

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

That debt - usually government/municipal or corporation - which is financed by the holder in exchange for interest from the issuer

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

A decrease in supply coupled with a decrease in price

What has a coefficient above one but less than infinity?

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

What has a coefficient above zero but less than one?

The difference between a firm's total revenue and its total costs

The value of one currency in relation to another