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Unformatted text preview: Price elasticity of supply A measure of the responsiveness of quantity supplied to changes in price Income elasticity of demand A measure of the responsiveness of quantity demanded to changes in income Cross price elasticity of demand A measure of the responsiveness of quantity demanded of one good to changes in price of another good Price Ceiling -- A legal maximum on a price that can be charged in the market Price Floor A legal minimum on the price that can be charged in the market Tax burden The difference in price that a buyer pays or a seller receives before and after a tax. World Price The price of a good that prevails in the world market for that good. (Also known as free trade price.) Tariff A tax on goods produced abroad and sold domestically....
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- Spring '08