Flashcards

Elasticity

Andrew Stonehouse A Level Economics English 29 cards

Cards in this deck (29)

1PED% Change in Qd / % Change in P
2PED is always negative because...the demand curve slopes downwards
3PED < -1Elastic
40>PED>-1Inelastic
5PED is affected byWidth of Market
Type of Good
Time
Number of Substitutes
Habit Forming
% of Income
6If PED is elastic, a increase in Total Revenue requires....a decrease in Price
7If PED is inelastic then to increase Total Revenue,....Price should be increased
8YED =% change in Qd / % Change in Income
9YED>0Inferior Good
100Normal Basic Good
111Normal Luxury Good
12XED=% Change Qd of x / % Change P of y
13Further from 0, the ....XED isstronger
14XED> 0Substitute
15XED < 0Complementary
16PES =& Change in Qs / % Change in P
170 < PES < 1Inelastic Supply
181 < PESElastic Supply
19PES is affected by....Ease of entry
Spare Capacity
Time
Stocks
Perishability
20Consumer Surplus touches the ....demand curve
21Producer Surplus touches the....supply curve
22Indirect Taxation is imposed on producers by Government to....raise revenue
change behaviour
23Indirect Taxes shifts supply curve to theleft
24Specific Taxation is...a constant amount
25AdValorem Taxes are a ...% of the price
26More Inelastic Demand/Supply =Higher Tax for consumers
27SubsidiesPayment from Government to Firms
to provide a particular good or service moving supply to the right
28Inelastic DemandChange in Price > Change in Quantity
29Inelastic Supply =Bigger Changes than elastic supply

Description: A Level Economics (Microeconomics) Flashcards on Elasticity, created by Andrew Stonehouse on 07/12/2017.
Created by: Andrew Stonehouse
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