Venezuela's Economic Crisis 2016

A situation where the prices of goods and services increase rapidly over a short period, causing a sharp decline in the value of money.

A measure of the general increase in prices of goods and services in an economy over time, expressed as a percentage.

A fixed exchange rate set by a government or central bank, without allowing the currency value to fluctuate based on market forces.

An illegal market where goods and services are bought and sold outside of official channels, often at higher prices than in the official market.

A currency exchange where individuals buy and sell currencies at unofficial rates, not controlled by the government.

A situation where goods and services are scarce, leading to shortages and difficulties for consumers.

The act of restricting the exchange of currency within a country, often done by governments during economic crises.

The process of converting one currency into another, often done by individuals or businesses for international transactions.

Government-imposed limits on the prices of goods and services, aiming to make them affordable for consumers.

Government spending that exceeds its revenue, often resulting in increased borrowing and potentially leading to inflation.

The process of reducing the value of a currency relative to other currencies.

The differences in prices charged for the same goods or services to different customer groups.

A healthcare practice where individuals are charged different fees for similar services based on factors like their income or insurance.

A situation where people cannot afford essential healthcare due to high costs.

A series of actions taken by governments or organizations to address and manage a financial crisis.

A measure of how responsive the quantity demanded of a good or service is to changes in its price. Elastic demand means a significant change in quantity demanded with a small price change, while inelastic demand means a small change in quantity demanded with a large price change.

In price discrimination, the seller can charge a higher price to customers with a lower price elasticity of demand (inelastic) and a lower price to customers with a higher price elasticity of demand (elastic).

Price discrimination can be beneficial to the seller by allowing them to capture more surplus from consumers. However, it can also be unfair to consumers who pay higher prices, potentially leading to market inefficiencies.

Under price discrimination, sellers can benefit by capturing additional surplus from consumers who are willing to pay a higher price. Consumers with lower price elasticity (inelastic) may be willing to pay more, while consumers with higher price elasticity (elastic) benefit from lower prices. However, it's essential to ensure fairness and avoid market distortions.

A residential accommodation arrangement where individuals pay rent to stay in a shared space, often a room in a house or apartment, with other tenants.

A price that is higher than the market price, often due to demand exceeding supply or other factors, like scarcity or high quality.

An arrangement where an individual or company agrees to pay a specific amount for a product or service in advance, with the value often discounted or fixed for a particular period.

The degree to which the quantity demanded of a good changes in response to a change in price.

A situation where the quantity demanded of a good changes significantly in response to a change in price. For example, if the price of a luxury item like a designer handbag increases, the demand for it might decrease significantly because people can choose cheaper alternatives.

A situation where the quantity demanded of a good changes very little in response to a change in price. For example, if the price of gasoline increases, people might still need to buy gasoline to get to work, so the demand might not change as much.

Changes in consumer preferences and purchasing habits often occur as income levels increase, making individuals value different brands and products. This is how individuals progress from basic needs to desires as they earn more.

The concept that describes how consumers often purchase goods or services at a lower price compared to higher prices, particularly when they're looking to save money. The sale of discounted goods attracts customers who might not have purchased those items at a full price.