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6 Cards in this Set
- Front
- Back
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Elasticity of Demand = ?
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(Difference of Two Quantity Changes)/(Midpoint of two Quantity Changes) = A1
(Difference of Two Price Changes)/(Midpoint of two Price Changes) = A2 Ed = A1/A2 |
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What is the relationship btwn elasticity of product demand vs elasticity of resource demand?
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The greater the elasticity of product demand, the greater the elasticity of resource demand
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Degree to which resources are substitutable?
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The larger the number of substitute resources available, the greater the elasticity of demand for a particular resource
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The larger the proportion of total production costs accounted for by a resource, --? (Ed)
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The greater the elasticity of demand for that resource
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Profit-Maximizing Combination of Hiring Labor and Capital
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(MRPLabor/PLabor) = (MRPCaptial/PCapital) = 1
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Real GDP = ?
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(nominal GDP)/(Price Index -in hundreths)
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