Demand — relationship?
Quantity demanded decreases as price increases.
Demand — definition?
Quantity consumers are willing to buy at various prices.
PED — definition?
Responsiveness of demand to price changes.
Supply — relationship with price?
Direct relationship; higher prices lead to higher supply.
Public goods — features?
Non-rival, non-excludable, provided by government.
PED — measure of?
Responsiveness of quantity demanded to price changes.
Elastic demand — PED?
Greater than 1; sensitive to price changes.
Inelastic demand — PED?
Less than 1; less sensitive to price changes.
Unitarity elasticity — PED?
Equal to 1; proportional change in demand and price.
YED — role?
Shows demand variation with income.
Test your knowledge with 9 questions on Understanding Microeconomic Market Dynamics.
1. What happens to demand when the price of a good increases, assuming other factors remain constant?
2. What is the formula for demand (QD) as given in the revision sheet?
Review the complete course in the revision sheet for Understanding Microeconomic Market Dynamics.
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