A-level Economics Edexcel keywords

what elasticity do normal necessities have

income inelastic

what elasticity do luxury goods have

income elastic

what is an inferior good or service

when superior g/s are available and people cannot afford them they chosen an inferior good

when might the demand for inferior goods rise

during a recession

how does YED < 0 impact overtime as income rises

as incomes rise demand declines and so too does the share on income spent on inferior goods

how does YED 0 to 1 impact overtime as income rises

as incomes rise the share/proportion of budget on these products will fall

how does YED 1 to infinity impact overtime as income rises

as incomes rise the proportion of a consumers income spent on the product will go up

what is supply

the quantity of a good or service that a producer is willing to supply at a given price during a given period of time

what is the acronym for factors that shift the supply curve

PINTSWC

what does PINTSWC stand for

productivity, indirect taxes, number of firms, technology, subsidies, weather and costs of production

what is joint supply

when increasing supply of one good causes an increase or decrease in the supply of another good

what is PES

the responsiveness of QS to a change in price

what is the formula for PES

% change in QS / % change in P

what are the values for PES

0 0 to 1 1 1 to infinity infinity

what does PES 0 represent

perfectly price inelastic supply

what does PES 0 mean

QS does not change at all when price chnages

what does PES 0 to 1 represent

relatively price inelastic supply

what does PES 0 to 1 mean

the % change in QS > % change in P

what does PES 1 represent

unit elastic supply

what does PES 1 mean

the % change in QS is exactly the same as the % change in price