Buyer - Someone who purchases goods and operate from a seller for money.
Competition - In a market economy, tilt occurs betwixt large numbers of purchaseers and sellers who vie for the opportunity to buy or sell goods and services. The competition among buyers means that scathes will neer fall very low, and the competition among sellers means that prices will never rise very high. This is only true if there are so many buyers and sellers that none of them has a significant conflict on the market equilibrium.
Demand - Demand refers to the amount of goods and services that buyers are willing to purchase. Typically, enquire decreases with increases in price; this kink can be graphically represented with a need curve. Demand can be affected by changes in income, changes in price, and changes in relative price.
Demand Curve - A demand curve is the graphical representation of the relationship between quantities of goods and services that buyers are willing to purchase and the price of those goods and services.
Elastic - Describes a supply or demand curve which is comparatively responsive to changes in price. That is, a curve wherein the quantity supplied or demanded changes easily when the price changes. A curve with an picnic great than or equal to 1 is elastic.
Elasticity - Refers to the degree of responsiveness a curve has with applaud to price. If quantity changes easily when price changes, and so the curve is elastic; if quantity doesnt change easily with changes in price, the curve is inelastic. The numerical equation to determine cracking is:
Elasticity = (% Change in Quantity)/(% Change in Price)
If elasticity is greater than 1, the curve is elastic. If it is less than 1, it is inelastic. If it equals one, it is unit elastic.
Elasticity of demand - Refers to the degree of responsiveness a demand curve has with respect to price. If quantity drops a great deal when price goes up, then the curve...If you want to get a full essay, order it on our website: Orderessay
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