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2 - THE MARKET, RED = FORGOTTON - Coggle Diagram
2 - THE MARKET
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4 - DEMAND
GOODS
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INFERIOR GOODS: Goods that will decrease in demand if income rises and increase in demand if income falls
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COMPLEMENTARY GOODS: Goods that are typically purchased together because they are often consumed together
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5 - SUPPLY
: The quantity of products that businesses are willing to sell to consumers during a given period of time for a given price
SUBSIDY: A grant given by the government, usually to encourage the purchase of a product
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Technology leads to a more efficient method of supply so supply is increased with introduction of new technology.
6 - MARKETS
EXCESS
EXCESS DEMAND: When there is insufficient supply for what is demanded from consumers, meaning there is a shortage of goods available.
EXCESS SUPPLY: When there is more supply than demanded, leading to unsold goods.
EQUILIBRIUM
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EXCESS DEMAND: The price is set below the equilibrium, meaning there is a shortage of goods.
EXCESS SUPPLY: The price is set above the equilibrium, there is a stock of unsold goods.
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