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What is the one thing that all markets have in common?
What is the formula that shows maximising utility?
What causes a movement ALONG the demand curve as opposed to a shift in the curve?
what is the law of diminishing utility?
Give 8 causes of the demand curve shifting
What is the formula for price elasticity of demand?
What do these different PED values show? :
PED > 1
PED < 1
PED = 1
PED = 0
PED = Infinity
What are the 6 determinants of PED?
What is the income elasticity of demand for..
- normal goods
- inferior goods
Give the formula for cross elasticity of demand
What is the cross elasticity of demand used to determine?
If there is a positive XED what does the relationship between the two goods is?
Why is the supply curve upwards sloping?
What are the 8 reasons for a shift in the supply curve?
What is the elasticity of the good when... :
PES > 1
PES < 1
PES = 0
PES = 1
PES = Infinity
what are the 6 determinants of the PES of a good?
What is price determined by?
what are the 3 functions of the price mechanism?
How do you show consumer and producer surplus on a diagram?
What will cause consumer and producer surplus to rise and what will cause them to fall?
What are the two types of indirect tax and how do they differ?
What would cause most the tax incidence to be on the consumer?
Give 3 alternative views of consumer behaviour
What are the underlying assumptions of rational decision making?
