ECONS QUICK

REVISION
UNTIL PES

PED - Responsiveness of Q. Demanded to its Price

PES - Responsiveness of Q. Supplied to its Price

YED - Responsiveness of Demand/QD to Consumer’s income

XED - Responsiveness of Q. Demand of one good in response to the Change in

Price of another good

Non-Price Determinants of Demand (EGYPTS)

E - Expectation of Consumers
G - Gahmen Policy
Y - YED (Consumers’ income)
P - Price of Related Goods
T - Tastes and Preferences
S - Seasonsoal Facors

Non-Price Determinants of Supply (WETPIG)

W - eather and Season

E - Expectations of Producers
T - Time period (Short-term, Long-term)
I - Input price (Price of raw materials)
G - Gahmen policies
Determinants of Price Elasticiy of DEMAND (PED) (TINS)

T - Time period
I - Proportion of Income spent
N - Degree of Necessity
S - Degree and Availabiltiy of Substitutes

Determinants of Price Elasticity of SUPPLY (PES) (TAMP)

T - Time period
A - availability of spare capacity or stocks (EG I have 500 free capacity so when the price increase I can
quick quick have space to make the goods)
M - Mobility of Factors of Production (EG I have some meds that require lots of skill to transport so
makes it difficult to increase production despite increase in price
P - Perishability of Goods -> Meds Price Inelastic )
Non-perishable -> Price Elastic
Perishable -> Price Inelastic
 MAIN USE OF PES: To determine the
extent of the price and quanitity fluctuations
given a change in demand

MAIN USE OF PED:

Not relevant
Prducwer produce suppyl
When supply change they more wooried about the demand

The prdicer is not interested in the supply they more

interested in

Not relevant in the apllication to prduce

PED SEE IFJ PRODUCER SHOULD INCREAESE

SUPPLY.
PRODUCER INFLUENCE PRICE THRU SUPPLY