About This Chapter
Determining Price in Economics - Chapter Summary
This chapter is a series of lesson videos composed to teach you about pricing in economics and the factors that affect it. Watch our expert instructors as they cover these topics with real life examples, and be sure to send them any questions you may have so that you can master the material covered. Once you have finished the chapter you should be knowledgeable about:
- Price ceilings and floors
- Government intervention and market forces that control the supply of goods, thus prices
- Price elasticity of demand and how to calculate it
- Cross-price elasticity of demand and calculations
- Elasticity of supply and calculations
In addition to watching these lesson videos, complete worksheets to fortify your knowledge, then take lesson quizzes to find areas you could review. As you review these areas, use video tags to go to specific spots in the lesson videos, or review entire lessons by reading over the lesson transcripts.
1. Price Ceilings and Price Floors in Microeconomics
Governments can restrict prices from going too low or too high through use of price ceilings. This lesson explains these concepts, as well as problems that can arise from their use.
2. Controlling Supply: Government Intervention & Market Forces
Sometimes, despite the best efforts of the market, a heavy hand is needed to control supply. This lesson looks at how the government and the market can work to do just that.
3. Price Elasticity of Demand in Microeconomics
Discover the definition and formula for price elasticity of demand. See some real-world examples of how it is calculated, and find out what it means for demand of a good to be inelastic or elastic.
4. Cross Price Elasticity of Demand: Definition and Formula
Learn what cross price elasticity of demand means. Find out why business owners and economists like to know cross price elasticity, and discover how to calculate it. See some everyday examples.
5. Income Elasticity of Demand in Microeconomics
The income elasticity of demand is a useful tool that measures what happens to consumer demand for products and services when incomes change. We will work through the formula and interpret what the answers mean.
6. Price Elasticity of Supply in Microeconomics
Price is an importance concept in economics, as it is the meeting point of supply and demand. This lesson explains some of the issues with elasticity of price with respect to supply, along with some real-world examples.
7. Price Skimming: Definition, Examples & Strategy
If you pay close attention to prices at retail stores, you may have witnessed price skimming. In this lesson, you'll learn about price skimming, it's overall strategy, and see some examples of it. A short quiz follows.
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Other chapters within the GACE Economics (538): Practice & Study Guide course
- Basic Economic Concepts & Terms
- Scarcity, Choice & The Production Possibilities Curve
- Comparative & Absolute Advantage, Specialization & Trade
- Supply, Demand & Market Equilibrium
- Government Issues in Economics
- Business Organization & Decision Making
- Producers & Production in Microeconomics
- Understanding Macroeconomic Equilibrium
- Scarce Economic Resource Markets Basics
- Economic Market Structures
- Basics of Measuring the Economy
- Understanding Economic Growth and Productivity
- Inflation & Adjustment in Economics
- Unemployment Basics
- Understanding Inflation & Unemployment
- Overview of Aggregate Demand & Supply
- Fiscal Policy & Monetary Policy
- Expansionary & Contractionary Gaps
- Money & the Market
- The Central Bank & Monetary Policy
- Foreign Exchange & Trade Balance
- Overview of Inflows, Outflows & Restrictions
- Personal Finance: Consumer Decision Making
- Personal Finance: Savings & Investments
- GACE Economics Flashcards