Save
Busy. Please wait.
Log in with Clever
or
show password
Forgot Password?
Don't have an account?  Sign up 
Sign up using Clever
or
Username is available taken
show password


Make sure to remember your password. If you forget it there is no way for StudyStack to send you a reset link. You would need to create a new account. Your email address is only used to allow you to reset your password. See our Privacy Policy and Terms of Service.

Already a StudyStack user? Log In

Reset Password
Enter the associated with your account, and we'll email you a link to reset your password.
focusNode
Didn't know it?
click below
 
Knew it?
click below
Don't Know
Remaining cards (0)
Know
0:00
edit
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.

  Normal Size     Small Size show me how

Economics 1.2.3

Economics- Edexcel 1.2.3

TermDefinition
PED full name price elasticity of demand
price elasticity of demand (PED) measures responsiveness of quantity demanded for a product after a change in the good’s own price
formula for PED percentage change in quantity demanded divided by the percentage change in price
normal goods with downward sloping demand curves have a negative coefficient of PED
Left to right along the demand curve PED becomes increasingly price inelastic
perfectly inelastic demand demand does not change at all when the price changes, PED=0, the demand curve is drawn as vertical
price inelastic demand demand for a good or service remains unchanged even when the price changes, PED is between 0 and -1
unit price elastic demand a demand in which any change in the price of a good leads to an equally proportional change in quantity demanded, PED=-1
price elastic demand quantity demanded responds more than proportionately to a change in price, PED is between -1 and infinity
perfectly elastic demand quantity demanded will fall to 0 if the price rises, PED= infinity, the demand curve is horizontal
luxuries items we can do without
price inelastic demand and total revenue a rise in price leads to a rise in total revenue
price elastic demand and total revenue a fall in price leads to a rise in total revenue
perfectly inelastic demand and total revenue a given price will result in the same revenue change
unit elastic demand and total revenue a change in the price leads to no change at all in total revenue
total revenue price per unit multiplies by quantity sold
Coefficient any of the factors of a product considered in relation to a specific factor
Habitual consumption repeatedly bought
Price volatility describes price fluctuations of a commodity
PED can predict effect on total revenue, price volatility, effect of indirect taxes on price and quantity, price discrimination
Price discrimination when a firm charges a different price to different groups of consumers for an identical good or service, for reasons not associated with costs of supply
YED full name income elasticity of demand
YED measures the relationship between a change in demand following a change in the real income of consumers
Formula for YED percentage change in demand divided by the percentage change in income
luxury products with high income elasticity see greater sales volatility over a business cycle than necessities
brand proliferation occurs when a large company acquires or absorbs multiple smaller brands in similar market areas
Created by: jessharris
Popular Economics sets

 

 



Voices

Use these flashcards to help memorize information. Look at the large card and try to recall what is on the other side. Then click the card to flip it. If you knew the answer, click the green Know box. Otherwise, click the red Don't know box.

When you've placed seven or more cards in the Don't know box, click "retry" to try those cards again.

If you've accidentally put the card in the wrong box, just click on the card to take it out of the box.

You can also use your keyboard to move the cards as follows:

If you are logged in to your account, this website will remember which cards you know and don't know so that they are in the same box the next time you log in.

When you need a break, try one of the other activities listed below the flashcards like Matching, Snowman, or Hungry Bug. Although it may feel like you're playing a game, your brain is still making more connections with the information to help you out.

To see how well you know the information, try the Quiz or Test activity.

Pass complete!
"Know" box contains:
Time elapsed:
Retries:
restart all cards