Eliminate a surplus of a good by allowing the market pice to fall
1 of 6
Ad Valorem Tax
A tax set as a percentage of a good / Pivotal shift in the supply curve
2 of 6
Asymmetric Information
When one party (i.e. the consumer) has less market information than the other party (i.e the producer)
3 of 6
Buffer Stock Scheme
Agency intervention to buy or sell a commodity to reduce price fluctuations
4 of 6
Complement
When a goods demand is increased as a result of the price of another good decreasing. This had a negative cross elasticity of demand
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Consumer Surplus
The difference between the price one is willing to pay and the actual market price. The area below the demand curve and above the equilibrium price line
6 of 6
Other cards in this set
Card 2
Front
Ad Valorem Tax
Back
A tax set as a percentage of a good / Pivotal shift in the supply curve
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