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ECONOMICS A-LEVEL (MICRO) > Elasticity > Flashcards

Elasticity Flashcards

1
Q

What is PED

A

Price elasticity of demand

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2
Q

whats the PED equation

A

% change QD/% change price

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3
Q

what are the elasticities with PED

A
  • infinity perfectly elastic
    -1 unit elastic
    0 perfectly inelastic
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4
Q

What are the factors that effect PED

A
  • availability of substitutes
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5
Q

what is PES

A

price elasticity of supply

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6
Q

What is the PES equation

A

% change QS/% change P

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7
Q

what are the elasticities of PES

A

0 - perfectly inelastic
1- unit elastic
infinity - perfectly elastic

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8
Q

What factors effect PES

A
  • Availability of substitutes
  • availability to stockpile
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9
Q

What is YED

A

income elasticity of demand

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10
Q

what is the YED equation

A

% change QD / % change Y

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11
Q

what is the elasticity of YED

A
  • infinity - elastic
    -1-1 inelastic
    1- infinity - elastic
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12
Q

YED goods

A

A normal good is a good with positive YED

An inferior good is a good with a negative YED

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13
Q

what is XED

A

cross elasticity of demand

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14
Q

what is the XED equation

A

% change QD of good B / % change of good A

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15
Q

what are the elasticities for XED

A

less than 0 = compliments
more than 0 = substitutes

The bigger the number the more complimentary of substitute the goods are

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16
Q

what are complimentary goods

A

goods or products that go well together

17
Q

substitutes

A

goods or services that are similar and can be swapped

18
Q

independant

A

neither substitutes or compliments

19
Q

what is consumer surplus

A

The amount a consumer is willing to pay compared to the amount they actually pay for the good/service

20
Q

producer surplus

A

the amount a producer is willing to accept for a good/service compared to how much they accept for a good/service

21
Q

where are consumer and producer surplus located on a supply demand disagram

A

consumer on top

producer below

22
Q
A
23
Q
A

ECONOMICS A-LEVEL (MICRO) (8 decks)

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