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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This note was uploaded on 06/08/2008 for the course ECON 304K taught by Professor Ledyard during the Spring '08 term at University of Texas.
- Spring '08