Glossary Category: Economics - Page 43 - 3auk

derived demand

In economics, derived demand refers to the demand for a resource, factor of production, or intermediate good that

Price Elasticity of Supply (PES) measures how responsive the quantity supplied of a good or service is to

Individual supply: the amount of a good or service that one producer is prepared and able to sell

Effective demand refers to the quantity of a good or service that consumers are willing and able to

Individual demand: the quantity of a good or service that a single consumer is prepared and able to

The free-rider problem arises when individuals can enjoy the benefits of a public good without contributing to its

Price elasticity of demand (PED) measures the responsiveness of the quantity demanded for a good or service to

Income elasticity of demand (YED) measures the sensitivity of the quantity demanded for a good or service to

Cross elasticity of demand (XED) measures the responsiveness of the quantity demanded for one good or service to

Free goods are goods that are not scarce and have zero opportunity cost because their availability is abundant