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16 Cards in this Set
- Front
- Back
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Elasticity definition: |
The measure of of responsiveness people are to the change in price |
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Price elasticity of Demand formula |
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How do you decide when something is inelastic when your talking numbers? |
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What's the graph look like for something that is perfectly inelastic? |
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Example of Inelastic demand problem. Just flip card |
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When is something elastic when talking numbers? |
Ed>1 |
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Elastic demand graph and example |
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When is something Unit Elastic? |
When Ed=1 |
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All 3 types of elasticity when talking numbers |
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Determinants of Demand |
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Midpoint method formula |
|Q2-Q1| |P2-P1| Divide Divide |Q2+Q1/2| |P2+P1/2| Then multiply the reciprocals of the above fractions |
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Total revenue definition: |
The price of a good X the quantity of the good sold |
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How total revenue reacts to price change. |
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Income elasticity Demand formula |
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How is a good determined in number form when talking Income elasticity Demand? |
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Income elasticity Demand example. Just flip card example. Just flip card |
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