hello quizlet
Home
Subjects
Expert solutions
Log in
Sign up
Edexcel Economics Theme 1.2a
5.0 (1 review)
Flashcards
Learn
Test
Match
What is utility?
Click the card to flip 👆
Satisfaction
Click the card to flip 👆
1 / 33
Flashcards
Learn
Test
Match
Created by
Econosaurus
Teacher
Demand and Supply
Terms in this set (33)
What is utility?
Satisfaction
What do consumers seek to maximise?
Utility
What do firms seek to maximise?
Profit
What is irrational behaviour?
Where actions do not maximise utility
Explain 3 reasons why agents may behave irrationally
Habit, inertia, influenced by others
What is bounded rationality?
Rationality within constraints (eg of time, information, computational skill, using rules of thumb)
What is demand?
The amount of a good or service customers are willing to buy at a given price (over a given time period)
Why are demand curves downward sloping?
Law of diminishing marginal utility, income effect, substitution effect
Illustrate an extension in demand
Sliding down the demand curve
What could cause an extension in demand?
An outward shift in supply
