question
subsidy
answer
a payment made by the government to a producers to reduce the market price
question
Elasticity
answer
a numerical measure of the responsiveness of one variable following a change in another variablw, ceteris paribus
question
Elastic
answer
where the relative change in demand or supply is greater than the change in price
question
Inelastic
answer
where the relative change in demand or supply is less than the change in price
question
price elasticity of demand
answer
a numerical measure of the responsiveness of the quantity demanded to a change in price of a product
question
Perfectly Inelastic
answer
where a change in price has no effect on the quantity demanded
question
Perfectly Elastic
answer
where all that is produced is sold at a given price
question
unit elasticity
answer
Where the change in price is relatively the same as the change in quantity demanded giving a numerical value of 1
question
Income elasticity of demand (YED)
answer
a numerical measure of the responsiveness of the quantity demanded following a change in income
question
Cross Elasticity of Demand (XED)
answer
a numerical measure of the responsiveness of the quantity demanded for one product following a change in the price of another related product
question
price elasticity of supply PES
answer
a numerical measure of the responsiveness of the quantity supplied to a change in the price of the product
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
