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5 Cards in this Set
- Front
- Back
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What is a subsidy? |
A subsidy is a payment from the government to a firm to encourage greater output and lower price to increase consumption. |
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What does a Demand curve show? |
Price changes cause quantity to change |
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What does the SLOPE of the demand curve show? |
Price elasticity of demand measures the change of quantity demanded after a change in price |
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Inelastic |
Consumers will still buy the product regardless of the price change |
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Elastic |
Consumers will stop buying the product and get an alternative if the price changes |
