How Markets Work

2. a time period in which all factors of production can be varied
4. a method of economic analysis that applies psychological insights into human behaviour to explain economic decision-making
6. implies that the quantity supplied is greater than the quantity demanded at the existing price
7. refers to how much is supplied at each price over a certain period of time
10. the difference between how much consumers are willing to pay and what they actually pay for a product
11. a percentage of the price of the product
14. refers to the level of satisfaction a consumer receives from the consumption of a product or service
15. the sensitivity of demand for one product to a change in the price of another product
17. relates to how the burden of a tax is distributed between different groups
19. the value of goods sold by a firm and is calculated by multiplying price times quantity sold
21. how much is demanded at each price over a certain period of time

1. the amount of satisfaction a person derives from the total amount of a product consumed
3. implies that the quantity demanded is greater than the quantity supplied at the existing price
5. a grant from the government which has the effect of reducing costs of production
7. a set amount per unit of the product
8. the difference between the cost of supply and the price received by the producer for the product
9. the sensitivity of supply of a product to a change in its price
12. a time period in which there is at least one fixed factor of production
13. taxes on expenditure
16. measures the sensitivity of the quantity demanded of a product to a change in its own price
18. determined by the interaction of the supply and demand curves
20. the sensitivity of demand for a product for a product to a change in real income