A LEVEL ECONOMICS (AQA) A+ GRADED 2023/2024.

A LEVEL ECONOMICS (AQA) A+ GRADED 2023/2024. The Law of Demand - CORRECT ANSWER-consumers will buy more of a good when its price is lower and less when its price is higher The Law of Supply - CORRECT ANSWER-producers offer more of a good as its price increases and less as its price falls Equilibrium Price - CORRECT ANSWER-the price at which the quantity demanded equals the quantity supplied Excess Supply - CORRECT ANSWER-the amount by which quantity supplied exceeds quantity demanded when the price of a good exceeds the equilibrium price Surplus - CORRECT ANSWER-A situation in which quantity supplied is greater than quantity demanded Excess Demand - CORRECT ANSWER-The situation that exists when demand is greater than supply. Deficit - CORRECT ANSWER-A situation in which quantity supplied is less than the quantity demanded Economics - CORRECT ANSWER-A social science that studies how people seek to satisfy their needs and wants by making choices Price Elasticity of Demand - CORRECT ANSWER-a measure of how much the quantity demanded of a good responds to a change in the price of that good. Income Elasticity of Demand - CORRECT ANSWER-a measure of the responsiveness of the quantity demanded to changes in income. Cross Price Elasticity of Demand - CORRECT ANSWER-measures the response of demand for one good to changes in the price of another good PED Formula - CORRECT ANSWER-% change in quantity demanded / % change in price YED Formula - CORRECT ANSWER-% change in quantity demanded / % change in income XED Formula - CORRECT ANSWER-% change in quantity demanded of good X / % change in price of good Y Luxury Good - CORRECT ANSWER-a good with an income elasticity greater than 1 for which demand rises by a greater amount than the rise in income. Normal Good - CORRECT ANSWER-a good for which the demand increases as income rises and decreases as income falls Veblen Good - CORRECT ANSWER-A good with a positively sloped demand curve. As price increases people buy more of these goods to demonstrate their social status. Inferior Good - CORRECT ANSWER-a good for which, other things being equal, an increase in income leads to a decrease in demand