The responsibilities of provincial and territorialgovernments include:

The federal government pays a portion of thesecosts through the Canada Health and SocialTransfer (CHST).

Transfer payments to seniors (the Seniors Benefit)

Tax credits to low-income parents (theChild Tax Credit)

Transfer payments to the unemployed(Employment Insurance)

Pensions (the Quebec and Canada Pension Plans)

Besides intervening in private markets, Canadiangovernments have an independent role.

Government programs include payments to adults withchildren, retirement funds for the elderly, unemploymentinsurance, welfare, higher education subsidies, free healthcare and schooling, and subsidized public housing.

A price floor is a minimum price set above theequilibrium price

A price ceiling is a maximum price set belowthe equilibrium price

Perfectly elastic supply means constant price anda horizontal supply curve

Perfectly inelastic supply means constant quantitysupplied and a vertical supply curve

Price elasticity of supply measures theresponsiveness of quantity supplied to price changes

Elastic supply means % change in quantity suppliedis more than % change in price

Inelastic supply means % change in quantity suppliedis less than % change in price

Portion of consumer incomes (products withsmaller portions more inelastic)

Access to substitutes (products with moresubstitutes more elastic)

Necessities versus luxuries (more inelasticfor necessities and more elastic for luxuries)

Time (more elastic with the passage of time)

A price change causes total revenue to changein the opposite direction when demand is elastic

A price change causes total revenue to changein the same direction when demand is inelastic

A price change does not affect total revenuewhen demand is unit-elastic

Perfectly elastic demand means constantprice and a horizontal demand curve

Perfectly inelastic demand means constantquantity demanded and a vertical demand curve

Price elasticity of demand shows how responsiveconsumers are to price changes

Elastic demand means % change in quantitydemanded is more than % change in price

inelastic demand means % change inquantity demanded is less than % change inprice

Unit-elastic demand means % change in quantitydemand equals % change in price