Microeconomics: Competitive Markets 5.0 / 5 based on 1 rating ? Business Studies & EconomicsMicroeconomics, Competitive Markets, Supply & Demand ASOCR Created by: SimoneCreated on: 03-11-13 16:20 Competitive Markets market in which a large number of producers compete to satisfy the wants and needs of a large number of consumers 1 of 21 Demand the quantity of a product that consumers are willing and able to buy at different market prices over a period of time, all else being equal 2 of 21 Market Demand total demand in a whole market - sum of individual demand curves 3 of 21 Effective Demand Demand backed by purchasing power 4 of 21 Notional Demand Demand arising from just wanting a product - not backed by purchasing power 5 of 21 Individual Demand demand of an individual buyer 6 of 21 Demand Schedule data used to draw the demand curve 7 of 21 Demand Curve shows the relationship between the quantity demanded and the price 8 of 21 Law of Demand states there is an inverse relationship between the quantity demanded and the price, ceteris paribus 9 of 21 Consumer Surplus the extra amount a consumer is willing to pay above the price that has been paid 10 of 21 Inferior Goods Demand decreases as income increases 11 of 21 Normal Goods Demand increases as income increases, demand decreases as income decreases 12 of 21 Luxury Goods Large increase in demand as income increases 13 of 21 Disposable Income Income after taxes have been deducted and state benefit added 14 of 21 Real Disposable Income Income after taxes have been deducted, state benefit added and the result adjusted to account for changes in price levels 15 of 21 Supply the quantity of a product producers are willing and able to supply at each market price over a period of time 16 of 21 Supply Curve shows the relationship between the price and the quantity supplied 17 of 21 Supply Schedule the data used to draw up the supply curve of a product 18 of 21 Individual Supply the quantity an individual producer is able to supply 19 of 21 Market Supply the sum of all individual supply curves of all producers 20 of 21 Producer Surplus the difference between the market price which producers receive and the price at which they are prepared to supply at 21 of 21
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