A-level Economics Edexcel keywords

Set 3

what’s the formula for total revenue

TR = P X Q

what is marginal revenue

addition to total revenue of selling one more unit of output

what happens when rising the price if demand is relatively price elastic

a fall in total revenue

what happens when lowering the price if demand is relatively price elastic

a rise in total revenue

what happens when rising the price if demand is relatively price inelastic

a rise in total revenue

what happens when lowering the price if demand is relatively price inelastic

a fall in total revenue

what happens when rising or lowering the price if demand of PED is unitary

changing the price doesn’t result in a change in total revenue

what happens when raising or lowering the price if PED is perfectly price inelastic

a given price change will result in the same revenue change

what is an indirect tax

a tax on goods and services to reduce consumption of demerit goods

what is pre and post tax

pre tax = before tax

post tax = after tax

who will taxes be passed onto when demand is elastic

producer

what is a subsidy

a payment from the government to firms to encourage the production of a good and to lower their average costs