IB Economics: Microeconomics

IB Economics SL May 2021

8 flashcards · Economics · by 5umrr

1. Price Mechanism

   SIRASignalling Incentivise Rationing Allocation

2. Determinants: Demand

   PASIFICPopulation Advertising Substitute's prices Income Fashion/trends Income taxes Compliment's prices

3. Determinants: Supply

   PINTSWCProductivity Indirect taxes No. of firms Technology Subsidies Weather Cost of Production

4. PED

   SPLATSubstitutes Proportion of income Luxury or necessity? Addictive? Time Responsiveness to the Demand of a good or service after a change in its market Price

5. PES

   PSSSTProduction Lag Spare capacity Stocks Substitutability of FoP Time Responsiveness to the Supply of a good or service after a change in its market Price Primary commodity: Palm oil Manufactured Commodity: Vaseline

6. YED

   Responsiveness to the Demand of a good or service after a change in Income Instant Noodles Hotels

7. XED

   Responsiveness to the Demand of a good or service after a change in price of a Related good iPhone Compliment: Airpod Substitute: Samsung Phone

8. YED & XED

   UHT Milk Compliment: Cereal Substitute: Regular milk