Micro Economics
18 important questions on Micro Economics
What are goods in joint supply?
- Two goods where production of one increases production of the other.
What is a price taker?
- A person or firm with no power to influence the market price.
What is Price Elasticity of Demand (PED) ?
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What is the Formula for PED?
-Q before you P
%change.in.QD / %change.in.Price
What is Elastic demand ?
What is Inelastic Demand?
What is Unit Elasticity of demand?
What are substitute goods?
- A pair of goods seen as alternatives.
- Price of one increases, demand for other rises.
What is the law of demand?
- Quantity of a good demanded per period of time will fall, as price rises
- Quantity of a good demanded per period of time will rise, as price falls.
- Other things being equal (ceteris paribus).
What are substitutes in supply?
- Two goods where increased production of one Diverts resources from producing the other
Describe equilibrium price.
- A price where quantity demanded equals quantity supplied
- The price where there is no shortage or surplus
What is the formula for Price Elasticity of Supply (PES)?
What is Price elasticity of Supply?
What is Income elasticity of demand? (YED)
What is the formula for Income elasticity of demand? (YED)
What is normal goods + inferior goods YED?
- Normal goods = Positive YED
- Inferior goods = Negative YED
What is Cross Price Elasticity of Demand?
What is the formula for CPED?
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