• Income-  can shift depending on if it is a normal good or inferior good

• Preferences
• Price of Related Goods- consider substitutes and complements
• Number of Buyers
• Expectations of Future Price

What is the

difference between change in demand and change in quantity demanded?

• Change in demand-curve shifts
• change in quantity demanded- movement in one point to another on the same curve

• Price in Relevant Resources
• Technology
• Number of sellers
• expectation of future price
• taxes and subsidies
• government restrictions

• Change in supply- curve shifts
• Change in quantity supplied- point on curve shifts

1. A price ceiling is a government mandated maximum price
2. Its effects can be shortages, fewer exchanges, nonprice rationing, buying/selling at prohibited prices, and tie-in sales

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1.  A price floor is a government mandated minimum price
2. Its effects can be surpluses and/or fewer exchanges 
3. [image]

It is a measurement of how much quantity demanded depends on price

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What do these mean:

1. E_d>1
2. E_d<1
3. E_d=1
4. E_d=∞
5. E_d=0

The item is:

1. elastic
2. inelastic
3. unit elastic
4. perfectly elastic
5. perfectly inelastic

Determinants of Elasticity of Demand

• Number of Substitutes
• Percentage of consumer's budget spent on good
• time

It is the change in quantity demanded based on change of income.

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What does this mean for an item?

1.  Ey>0
2. Ey<0

1. The item is is a normal good (demand increases as income inreases)
2. The item is an inferior good(demand decreases as income increases)

Its the change in quantity supplied due to change in price.

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Same rules as for demand except for supply

Change in quantity demanded of one good in response to change in price of another good

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What does it mean if

1. E_A/B>0
2. E_A/B<0

1. The goods are substitutes

2. The goods are complements