13956860
Description
Flashcards by Jesse McNab, updated more than 1 year ago
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Created by Jesse McNab
over 6 years ago
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| Question | Answer |
| Utility | level of satisfaction a consumer receives from the consumption of a product or service |
| Demand | how much is demanded at each price over a certain period of time |
| Price Elasticity Of Demand (PED) | measures the sensitivity of the quantity demanded of a product to a change in its own price |
| Total revenue | value of goods sold by a firm - calculated by Price x Quantity (PXQ) |
| Cross Elasticity Of Demand (XED) | the sensitivity of demand for one product to a change in the price of another product |
| Income Elasticity of Demand (YED) | sensitivity of demand for a product to change in real income |
| Price Elasticity Of Supply (PES) | sensitivity of supply of a product to a change in its price |
| XED formula | |
| PED formula | |
| YED formula | |
| PES formula | |
| Supply | how much is supplied at each price over a certain period of time |
| Short run | at least 1 fixed factor of production |
| Long run | all factors of production can be varied |
| Equilibrium | When Supply and Demand curves cross |
| Excess supply | when the quantity supplied is greater than the quantity demanded at the existing price |
| Excess demand | When the quantity demanded is greater than the quantity supplied at the existing price |
| Consumer surplus | the difference between how much consumers are willing to pay and how much consumers actually pay for a product |
| Producer surplus | the difference between the cost of supply and the price received by the producer for a product |
| Indirect taxes | taxes on expenditure |
| Ad Valorem taxes | a percentage of the price of the product |
| Specific taxes | a set amount per unit of the product |
| Incidence of tax | how the burden of a tax is distributed between different groups - producers and consumers |
| Subsidy | a grant from the government which has the effect of reducing costs of production |
| Behavioural economics | a method of economic analysis that applies psychological insights into human behaviour to explain economic decision-making |
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