Ch 6: Determining Price in Economics
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
In microeconomics, price ceilings and price floors are limits set to regulate the pricing of goods and services or market equilibrium. Learn about the effects of price ceilings and floors on market equilibrium, the meaning of deadweight loss, and the purpose of government intervention.
2. Controlling Supply: Government Intervention & Market Forces
Supply is controlled by different entities for a number of reasons, whether that is through government intervention or market forces. In this lesson, investigate why people want to control supply, market forces, government controls, and breaking the law.
3. Price Elasticity of Demand in Microeconomics
In microeconomics, the principle of price elasticity of demand is important to understand. Learn the definition of price elasticity of demand, understand the formula and its categories, and see some calculation examples.
4. Cross Price Elasticity of Demand: Definition and Formula
Cross price elasticity of demand refers to the responsiveness of the quantity demanded of a certain good to the price change of another good. Learn more about its definition and use, the formula and rue of the thumb, and examples.
5. Income Elasticity of Demand in Microeconomics
In microeconomics, the principle of income elasticity of demand, which illustrates the relationship between demand and income, is important to understand the field as a whole. In this lesson, dive into the definition of income elasticity of demand and understand how it impacts normal goods, necessities, and inferior goods.
6. Price Elasticity of Supply in Microeconomics
In microeconomics, price elasticity of supply refers to the capacity of response that supply quantity has given to price changes. Identify the distinctions between elasticity of demand and supply through several examples, understand how it is determined and calculated, and consider long-term elasticity.
7. Price Skimming: Definition, Examples & Strategy
Price skimming is a pricing strategy employed by some businesses that involves using different prices for the same product over time to generate profits. Learn the definition of price skimming, review the three phases of the practice, and look at some examples.
Earning College Credit
Did you know… We have over 220 college courses that prepare you to earn credit by exam that is accepted by over 1,500 colleges and universities. You can test out of the first two years of college and save thousands off your degree. Anyone can earn credit-by-exam regardless of age or education level.
To learn more, visit our Earning Credit Page
Other Chapters
Other chapters within the GACE Economics (538): Practice & Study Guide course
- About the GACE Test
- 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