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18 Cards in this Set
- Front
- Back
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Ceteris Paribus
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All things being equal
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Inferior Good
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E<0
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Normal Good(Income-Inelastic)
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0 < E < 1
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Normal Good(Income Elastic)
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E>1
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TINDER
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Tastes and Preferences
Income Number of Buyers Demographic Changes Expectations Related Goods (Price Of) |
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TINTS
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Taxes
Inputs(Price Of) Nature and Politics Technology Suppliers(# of) |
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Inelastic Demand
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A change in price only causes a slight change in quantity demanded.
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Elastic Demand
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A slight change in price causes a significant change in quantity demanded.
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Unit-Elastic Demand
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When price changes quantity changes in equal increments.
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Fallacy of Composition
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The erroneous perception that what is true for the individual is also true for the whole group.
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Absence of Poverty
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Basic levels of need have been met.
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Absence of Scarcity
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Would imply that all desires have been met.
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Voluntary Exchange
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Channeling goods to people who value you them more from people who value them less.
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Invisible Hand Principle
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The tendency of market prices to direct individuals pursuing their own interest into activities that will benefit the economic well-being of society.
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If an item has more substitutes it means...
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demand is more elastic.
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A bigger portion of income is spent on an item means...
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demand is more elastic.
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A long time has elapsed since the price changed means...
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demand is more elastic.
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Middleman
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A person who buys and sells, or arranges trades. They reduce transaction costs. The internet also lowered transaction costs.
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