Economics: Topic 2, Year 1 Definitions

The amount of a good or service that consumers in a market are willing and able to buy at any given price over a period of time.

The flow of earnings paid to labour over a period of time.

A stock of assets owned by an individual or organisation.

Goods or services that can replace each other.

Goods or services that are used alongside each other.

The range of factors that influence people's desires and consequently their demand for specific products.

Shows the relationship between the price of a good and the quantity demanded of that good.

Measures the responsiveness of the quantity demanded of a product to a change in the price of a product.

Measures the responsiveness of the quantity demanded of the product to a change in incomes.

Measures the responsiveness of the quantity demanded of a product to a charge in the price of another product.

Goods that experience an increase in quantity demanded as incomes increase, other things being equal.

Goods that experience a decrease in quantity demanded as incomes increase, other things being equal.

The amount of a good or service that firms intend to offer for sale at any given price over a period of time.

Shows the relationship between the price of a good and the quantity supplied of that good.

Measures the responsiveness of the quantity supplied of a product to a change in the price of that product.

The price at which the market is in equilibrium because the quantity that consumers want to buy (demand) is the same as the quantity that firms want to offer for sale (supply).

A situation in which the price is such that the quantity demanded exceeds the quantity offered for supply.

A situation in which the price is such that the quantity offered for supply exceeds the quantity demanded.

A position from which there is no tendency to change.

A situation in which the price is such that the quantity that consumers want to buy (demand) is the same as the quantity that firms want to offer for sale (supply).

A position from which there is a tendency to change.

Occurs when a good might be purchased as an alternative to another good.

Occurs when the demand for a good or service is determined by the demand for another good or supply.

Occurs when a good is demanded for different purposes.

A situation in which two or more goods or services are used together.

Occurs when the supply of one good automatically leads to the production of another good.