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11 Cards in this Set
- Front
- Back
price elasticity of demand
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amount demand changes relative to change in price
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elastic demand
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price of elasticity > 1. change in price of 1% causes a > 1% change in demand
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unit elasticity of demand
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change in price is exactly equal to change in demand
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inelastic demand
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change in price causes a smaller change in demand
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perfectly inelastic demand
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no matter the price, the demand remains the same
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perfectly elastic demand
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a slight increase in price will zero out demand
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cross price elasticity of demand
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percentage change in demand of one good versus the percentage change in price of another good.
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income elasticity of demand
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as people get more income, it might change the amount they consumer
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price elasticity of supply
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quantity supplied compared to a change in price
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perfectly elastic supply
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decrease in price reduces quatity to zero
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perfectly inelastic supply
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quantity remains the same no matter what price
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