Term
| Non-price determinants of demand and supply |
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Definition
Consumer tastes and preferences. Market size. Income. Consumer expectations. |
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Definition
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Term
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Definition
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Term
| Elastic vs. inelastic demand |
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Definition
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Term
| Elastic vs. inelastic supply |
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Definition
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Term
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Definition
effects that an economic activity has on people and businesses that are neither producers nor consumers of the good or service being produced. An externality may be either positive (beneficial) or negative (harmful). Example of a negative externality - pollution. |
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Term
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Definition
| The point at which the quantity supplied and the quantity demanded for a product are equal at the same price. |
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Term
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Definition
Surplus - when the quantity supplied of an item at a given price exceeds the quantity demanded. Shortage - when the quantity demanded of a good or resource exceeds the quantity supplied. |
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Term
| Price floor / price ceiling |
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Definition
Price floor - a government regulation that sets a minimum price for a particular good. Price ceiling - a government regulation that sets a maximum price for a particular good. |
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Definition
| An ideal market condition that includes a large number of sellers of identical goods and services and in which no seller controls supply or prices. |
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Term
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Definition
A market in which a single seller has control over a good or service |
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Term
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Definition
A market in which a few large sellers control most of the production of a good or service. |
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