Flashcards - Determining Price in Economics

Flashcards - Determining Price in Economics
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price floors
A price floor is a government- or group-imposed price control or limit on how low a price can be charged for a product
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price ceilings
A price ceiling is a government-imposed price control or limit on how high a price is charged for a product
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Deadweight loss
In economics, a deadweight loss is a loss of economic efficiency that can occur when equilibrium for a good or service is not achieved or is not achievable
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Price skimming
Price skimming is a pricing strategy in which a marketer sets a relatively high price for a product or service at first, then lowers the price over time
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Price elasticity of demand
Price elasticity of demand is a measure used in economics to show the responsiveness, or elasticity, of the quantity demanded of a good or service to a change in its price, ceteris paribus
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Price elasticity of demand
Price elasticity of demand is a measure used in economics to show the responsiveness, or elasticity, of the quantity demanded of a good or service to a change in its price, ceteris paribus
Price skimming
Price skimming is a pricing strategy in which a marketer sets a relatively high price for a product or service at first, then lowers the price over time
Deadweight loss
In economics, a deadweight loss is a loss of economic efficiency that can occur when equilibrium for a good or service is not achieved or is not achievable
price ceilings
A price ceiling is a government-imposed price control or limit on how high a price is charged for a product
price floors
A price floor is a government- or group-imposed price control or limit on how low a price can be charged for a product
cartel
In economics, a cartel is an agreement between competing firms to control prices or exclude entry of a new competitor in a market
subsidies
A subsidy is a form of financial aid or support extended to an economic sector generally with the aim of promoting economic and social policy
income elasticity of demand
In economics, income elasticity of demand measures the responsiveness of the quantity demanded for a good or service to a change in the income of the people demanding the good, ceteris paribus
normal good
In economics, normal goods are any goods for which demand increases when income increases, and falls when income decreases but price remains constant, i
price elasticity of supply
Price elasticity of supply is a measure used in economics to show the responsiveness, or elasticity, of the quantity supplied of a good or service to a change in its price
life cycle
In biology, a life cycle is a series of changes in form that an organism undergoes, returning to the starting state

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