1.2 How Markets Work

?
O X P V D C J P E R C E N T C H A N G E N
W N P Q U D S A A O O E Y V K M S D V S H
X E D I N T E R P R E T A T I O N L S Y S
G C F B M P U T R X F L X R T Q W B Y C Q
S N C D I N D I R E C T T A X G S V Y D Q
A G C D Y X F B M F K W K X W A R B S T J
L T U P J T J E U G M S S H R Q Y X O Y G
P G J J H S Q G L P E O K C U J T E S C M
J B Q P E D F O R M U L A I S F T D H W C
G A X U C L R U H U X W K G D W X F I I B
Y P F M D V D A O Y T H G Q H T U O W M S
Y E D I N T E R P R E T A T I O N R B K A
S R V I N E L A S T I C G O O D S M T F D
V E Q G F B H Q N P R O T C T U K U I B Q
P R O D U C E R S U R P L U S E U L B N J
T W N S N P T O P B X A A O Y P B A U Y B
X R D U S M W M R N C X O P G S H X U N G
Q E L A S T I C G O O D S I O Y U C F S J
C V C O N S U M E R S U R P L U S C E B R
D C S P L L O S E B O N J E A M G H P T D
A I I D S U I Y G V C V A X J F Y O B N H

Clues

  • %change in quantity demanded/ %change in price (3, 7)
  • %change in the Quantity demanded of Product A/ %change in the price of product B (3, 7)
  • Difference/ First figure x 100 (7, 6)
  • If XED is positive then the products are substitute, if its negative then the products are complements. (3, 14)
  • If YED is positive then goods are classed as normal goods, if YED is negative then goods are classed as inferior. (3, 14)
  • Luxury, lots of competition (7, 5)
  • No substitutes, necessities, addictive (9, 5)
  • The difference between the actual market price and the price that they were willing to supply at. (8, 7)
  • The difference between the price the customer is willing to pay and the price that they do pay. (8, 7)
  • When tax is applied per unit or volume sold. (8, 3)

Comments

No comments have yet been made

Similar Economics resources:

See all Economics resources »See all Competitive markets resources »