Economics Concepts Flashcards

Front

What is a market?

Back

A market can be defined as a group of buyers and sellers of a particular product.

Front

What is demand?

Back

Demand is an economic concept that relates to a consumer's desire to purchase goods and services and their willingness to pay a specific price for them.

Front

What does the law of demand state?

Back

The law of demand states that there is a negative causal relationship between the price of a good and the quantity of the good demanded during a particular time period, ceteris paribus.

Front

What is a demand curve?

Back

The demand curve is a line graph used in economics that shows how many units of a good or service will be purchased at various prices.

Front

What is market demand?

Back

Market demand is the sum of all individual demands for a specific product.

Front

What are non-price determinants of demand?

Back

Non-price determinants of demand are the non-price variables that influence the demand for a product.

Front

What does TRIBE stand for in the context of demand?

Back

Tastes and preferences, Related goods, Income, Buyers in the market, Expectations of future prices.

Front

What is a normal good?

Back

A normal good is a good for which demand increases as income rises and decreases as income falls.

Front

What is an inferior good?

Back

An inferior good is a good for which demand decreases as income rises and increases as income falls.

Front

What are substitutes?

Back

Substitutes are products that can be consumed in place of one another (e.g., coffee and tea).