where a producer limits the supply of products in the market to ensure the products remain exclusive or removing excess demand
iontarngi
rationing
control
minimum price
complements: joint demand
cost of production, upward sloping, inventory or perishable, willing and able
supply
a tax that is charged as a given percentage of the price
axdavtamleor
ad valorem tax
borne by the consumer
incidence
inelastic supply
substitutes, time, addictive, proportion of income
numerical measure of income inequality
gtinneiecoffe
gini coefficient
government intervention
provision of information
what does it create?
surplus of labour (unemployment)
taxes, subsidies, max, min price, provision of goods
government intervention tools
when there is a sift in the demand curve due to a change in factors other than the price of the product
csheagnniddenmnda
changes in demand
difficult to redistribute income/hard to collect in this type
taxes, progressive taxes, informal economy
influence on income to do this
disposable income, taxes decrease
lack of employment opportunities, poor training, lack of investment, poor infrastructure, low rate of savings, inability of people to obtain credit
economic reasons for inequality of income and wealth
all things equal
cseiertpsarubi
ceteris paribus
replacement/with
cross elasticity of demand (XED)
reasons for the direct provision

underproduction of a merit good
lack of public goods, over/under production of demerit and merit goods, information failure, uncertain weather conditions, monopolies
market failures