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10 Cards in this Set
- Front
- Back
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What causes change in demand?
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Non-price factors (income)
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What causes change in quantity demanded?
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Changes in price
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a good with a positive income elasticity of demand
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normal good
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a good with a negative income elasticity of demand
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inferior good
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goods with a positive cross-price elasticity
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complements
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goods with a negative cross-price elasticity
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substitutes
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a measure of the rate of percentage change of quantity demanded with respect to price, holding all other determinants of demand constant
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price elasticity of demand
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between -1 and - infinite
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elastic demand
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between 0 and -1
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inelastic demand
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%DQs/%DP =
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DQs/DP x P/Qs
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