Economics Revision Cards

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  • Created by: PscBruce
  • Created on: 10-10-21 22:33
What is income elasticity of demand (YED)?
A measure of the sensitivity of quantity demanded to a change in consumer incomes
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What is price elasticity of demand (PED)?
A measure of the sensitivity of quantity demanded to a change in the price of a good or service
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What is cross elasticity of demand (XED)?
A measure of the sensitivity of quantity demanded of a good or service to a change in the price of some other good or service
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What is price elasticity of supply (PES)?
A measure of the sensitivity of quantity supplied of a good or service to a change in the price of that good or service
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What's the difference between an inelastic good and a elastic good?
A product is considered to be inelastic if the quantity demand of the product changes very little when its price fluctuates however elastic is if the quantity demand of the product changes more than proportionally when its price increases or decreases.
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What's the difference between an inferior good and a normal good?
an inferior good is a good whose demand decreases when consumer income rises (or the opposite) however normal goods are those goods for which the demand rises as consumer income rises.
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What's the difference between a complementary good and a substitute good
Complements are goods that are consumed together however substitutes are goods where you can consume a good in place of the another good.
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What is demand?
The quantity of a good or service that consumers are willing and able to buy at any possible price in a given period
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Other cards in this set

Card 2

Front

What is price elasticity of demand (PED)?

Back

A measure of the sensitivity of quantity demanded to a change in the price of a good or service

Card 3

Front

What is cross elasticity of demand (XED)?

Back

Preview of the front of card 3

Card 4

Front

What is price elasticity of supply (PES)?

Back

Preview of the front of card 4

Card 5

Front

What's the difference between an inelastic good and a elastic good?

Back

Preview of the front of card 5
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