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15 Cards in this Set
- Front
- Back
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Elasticity |
A measure of how much consumers and producers will respond to a change in market conditions |
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Price elasticity of demand |
The size of the change in the quantity demanded of a good or service when its price changes |
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Mid-point method |
Method that measures percentage change in demand (or supply) relative to a point midway between two points on a curve; used to estimate elasticity. |
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Perfectly elastic demand |
Demand for which the demand curve is horizontal, in a way such that demand could be any quantity at the given price, but drops to zero if the price increases |
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Perfectly inelastic demand |
Demand for which the demand curve is vertical, in a way such hay the quantity demanded is always the same no matter what the price |
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Elastic |
Demand that has an absolute value of elasticity greater then 1 |
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Elastic |
Demand that has an absolute value of elasticity greater then 1 |
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Inelastic |
Demand that had an absolute value of elasticity less than 1 |
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Elastic |
Demand that has an absolute value of elasticity greater then 1 |
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Inelastic |
Demand that had an absolute value of elasticity less than 1 |
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Unit-elastic |
Demand that has an absolute value of elasticity exactly equal to 1 |
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Total revenue |
The amount that a firm receives from the sale of goods and services; calculated as the quantity sold multiplied by the price paid for each unit |
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Price elasticity of supply |
The size of the change in the quantity supplied of a good or service when it's price changes |
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Cross-price elasticity of demand |
A measure of how the quantity demanded of one good changes when the price of a different food changes |
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Income elasticity of demand |
A measure of how much the quantity demanded changes in response to a change in consumers' incomes |
