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| elasticity | a measure of the responsiveness of quantity demanded or quantity supplied to one of its determinants |
| price elasticity of demand | measure of how much the quantity demanded of a good responds to a change in the price of that good |
| total revenue | the amount paid by buyers and received by sellers of a good |
| income elasticity of demand | a measure of how much the quantity demanded of a good responds to a change in consumer's income |
| cross-price elasticity | a measure of how much the quantity demanded of one good responds to a changein the price of another good |
| price elasticity of supply | a measure of how much the quantity supplied of a good responds to a change in the price of that good |
| price ceiling | a legal maximum on the price at which a good can be sold |
| price floor | a legal minimum on the price at which a good can be sold |
| tax incidence | the manner in which the burden of a tax is shared among participants in a market |
| welfare economics | the study of how the allocation of resources affects economic wellbeing |
| willingness to pay | the max amount that a buyer will pay for a good |
| consumer surplus | the amount a buyer is willing to pay for a good minus the amount he actually pays |
| cost | the value of everything a seller must give up to produce a good |
| producer surplus | the amount a seller is paid for a good minus the seller's cost of providing it |
| efficiency | the property of a resource allocation of maximizing the total surplus receivedby all members of society |
| equity | the fairness of the distribution of well-being among the members of society |
| deadweight loss | the fall in total surplus that resultsfrom a market distortion, such as a tax |
