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12 Cards in this Set
- Front
- Back
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If demand increases |
Prices increases, quantity increases |
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If demand decreases |
Prices decreases, quantity decreases |
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If supply increases |
Prices decreases, quantity increases |
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If supply decreases |
Prices increases, quantity decreases |
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If an increase in supply and decrease in demand |
Price decreases, quantity remains the same |
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If a decrease in supply and increase in demand |
Price increase, quantity remains the same |
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Percentage Change in Price |
((New Price - Initial Price) / (New Price + Initial Price) ÷ 2)) × 100 |
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Percentage Change in Quantity |
((New Quantity - Initial Quantity)/((New Quantity + Initial Quantity) ÷2 )) × 100 |
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Price Elasticity of Demand |
Percentage Change in Quantity Demanded" / "Percentage Change in Price "
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Price elasticity of Supply |
"Percentage change in quantity supplied" / "Percentage change in price"
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Law of demand
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If price increases, quantity demanded decreases If price decreases, quantity demanded increases |
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Law of Supply |
If prices increase, quantity supplied increases If prices decreases, quantity supplied decreases |
