Demand Flashcards
1
Q
Shift in demand curve
A
Population
Advertisement
Substitutes
Income
Fashion and taste
Income tax
Complements
2
Q
PED FORMULA
A
% change quantity demanded
over
% change in price
3
Q
Factors that influence PED
A
- Number of close substitutes
- Luxuries and necessities
- Addiction
- Time
4
Q
Total Revenue
A
Price x Quantity
5
Q
XED FORMULA
A
% change in quantity demanded
over
% change in price
6
Q
XED FORMULA
A
% change in quantity demanded of X
over
% change in price of good Y
7
Q
elastic
A
change in price causes a big change in quantity
8
Q
inelastic
A
change in price does not cause a big change in quantity
