Elasticity Flashcards
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| 668568294 | cross-price elasticity of demand | the percentage change in quantity demanded of one good divided by the percentage change in the price of another good. | 0 | |
| 668568295 | elastic | refers to a market for a product or service that is price sensitive; that is, relatively small changes in price will generate fairly large changes in the quantity demanded | 1 | |
| 668568296 | income elasticity of demand | a measure of how much the quantity demanded of a good responds to a change in consumers' income | 2 | |
| 668568297 | inelastic | describes demand that is not very sensitive to a change in price. | 3 | |
| 668568298 | perfectly elastic demand | the case where the quantity demanded is infinitely responsive to price, and the price elasticity of demand equals infinity. | 4 | |
| 668568299 | perfectly elastic supply | when the quantity supplied changes by a very large percentage in response to an almost zero percentage change in price | 5 | |
| 668568300 | perfectly inelastic demand | the case where the quantity demanded is completely unresponsive to price, and the price elasticity of demand equals zero. | 6 | |
| 668568301 | perfectly inelastic supply | the case in which the price elasticity of supply is zero, so that changes in the price of the good have no effect on the quantity supplied; the perfectly inelastic supply curve is a vertical line. | 7 | |
| 668568302 | price elasticity of demand | the percentage change in quantity demanded divided by the percentage change in price | 8 | |
| 668568303 | price elasticity of supply | the responsiveness of the quantity supplied to a change in price, measured by dividing the percentage change in the quantity supplied of a product by the percentage change in the product's price | 9 | |
| 668568304 | total expenditure | equal to the sum of revenue received by firms or sum of spending by households | 10 | |
| 668568305 | total revenue | The total amount of money a firm receives by selling goods or services | 11 | |
| 668568306 | unit elastic | elasticity where a change in the independent variable (usually price) generates a proportional change of the dependent variable (quantity demanded or supplied) | 12 |