How markets work defenitions

Pregunta	Respuesta
Utility	level of satisfaction a consumer receives from the consumption of a product or service
Demand	how much is demanded at each price over a certain period of time
Price Elasticity Of Demand (PED)	measures the sensitivity of the quantity demanded of a product to a change in its own price
Total revenue	value of goods sold by a firm - calculated by Price x Quantity (PXQ)
Cross Elasticity Of Demand (XED)	the sensitivity of demand for one product to a change in the price of another product
Income Elasticity of Demand (YED)	sensitivity of demand for a product to change in real income
Price Elasticity Of Supply (PES)	sensitivity of supply of a product to a change in its price
XED formula	Image: Xed Calc (binary/octet-stream)
PED formula	Image: Ped Calc (binary/octet-stream)
YED formula	Image: Yed Calc (binary/octet-stream)
PES formula	Image: Pes Calc (binary/octet-stream)
Supply	how much is supplied at each price over a certain period of time
Short run	at least 1 fixed factor of production
Long run	all factors of production can be varied
Equilibrium	When Supply and Demand curves cross
Excess supply	when the quantity supplied is greater than the quantity demanded at the existing price
Excess demand	When the quantity demanded is greater than the quantity supplied at the existing price
Consumer surplus	the difference between how much consumers are willing to pay and how much consumers actually pay for a product
Producer surplus	the difference between the cost of supply and the price received by the producer for a product
Indirect taxes	taxes on expenditure
Ad Valorem taxes	a percentage of the price of the product
Specific taxes	a set amount per unit of the product
Incidence of tax	how the burden of a tax is distributed between different groups - producers and consumers
Subsidy	a grant from the government which has the effect of reducing costs of production
Behavioural economics	a method of economic analysis that applies psychological insights into human behaviour to explain economic decision-making

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	Creado por Jesse McNab hace más de 6 años