Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off
Reading...
Front

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key

image

Play button

image

Play button

image

Progress

1/15

Click to flip

15 Cards in this Set

  • Front
  • Back
Price Elasticity of Demand
the percentage change in the quantity demanded of a product divided by the percentage change in the price of that product
Perfectly Elastic Demand Curve
a horizontal demand curve indicating that consumers can and will purchase all they want at one price
Perfectly Inelastic Demand
a vertical demand curve indicating that there is no change in the quantity demanded as the price changes
Total Revenue (TR)
TR = P X Q
Price Discrimination
Charging different customers different prices for the same product
The ___ substitutes there are for a product, the ___ the price elasticity of demand
more, greater
The ____ the period under consideration, the ___ elastic the demand for the good
longer, more
Cross-price elasticity of demand
the percentage change in the quantity demanded for one good divided by the percentage change in the price of a related good, everything else held constant
income elasticity of demand
the percentage change in the quantity demanded for a good divided by the percentage change in income, everything else held constant
normal goods
goods for which the income elasticity of demand is positive
inferior goods
goods for which the income elasticity of demand is negative
luxury good
a good or service that will be purchased only when income is high
price elasticity of supply
the percentage change in the quantity supplied divided by the percentage change in pricek everything else held constant
short run / long run
a period of time short enough that the quantities of at least one of the resources cannot be varied

a period of time long enough that the quantities of all resources can be varied
tax incidence
a measure of who pays a tax