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7 Cards in this Set
- Front
- Back
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Elasticity |
A measure of the responsiveness of quantity demanded or quantity supplied to a change in one of its determinants |
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Price elasticity of demand |
A measure of how much the quantity demanded of a good response to a change in the price of that good computed as the percentage change in quantity demanded divided by the percentage change in price |
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Determinants of price elasticity of demand |
Availability of close substitutes, Necessities versus luxuries, definition of the market, time Horizon |
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Total Revenue |
The amount paid by buyers and received by sellers of a good computed as the price of the good times the quantity sold |
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Income elasticity of demand |
A measure of how much the quantity demanded of a good response to a change in consumers income computed as the percentage change in quantity demanded divided by the percentage change in income |
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Cross price elasticity of demand |
A measure of how much the quantity demanded of one good response to a change in the price of another good computed as the percentage change in quantity demanded of the first good divided by the percentage change in price of the second good |
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Price elasticity of supply |
A measure of how much the quantity supplied of a good response to a change in the price of that good, computed as the percentage change in quantity supplied divided by the percentage change in price |
