Goods for which demand goes up when income is higher and for which demand goes down when income is lower.
goods for which demand falls as income rises
A legal maximum price above which the product cannot be sold. If a floor is installed at some level above the equilibrium price, it creates a permanent shortage
A legally determined minimum price that sellers may receive, can have the effect of causing a shortage, or if it is not binding(does not conflict with equilibrium price) nothing
if supply curve is more elastic than the demand curve, ______ carry more of the tax burden
iif demand curve is more elastic than the supply curve, ______ carry more of the tax burden
if the supply(demand) curve is perfectly ______, consumers(suppliers) carry ALL of tax burden
if the supply(demand) curve is perfectly ______, suppliers(consumers) carry ALL of tax burn
cross price elasticity
It is a measure of the responsiveness of the demand for one good or service to a change in the price of another good or service.
A measure of how sensitive consumption of a good is to a ∆ in consumer's income