Eco 251 Ch. 6 - Custom Scholars
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Eco 251 Ch. 6

question
Elasticity
answer
Measures how much one economic variable response to changes in another economic variable
question
Price elasticity of demand
answer
Measures how responsive the quantity demanded is to changes in price
question
Elastic
answer
quantity demanded changes more than proportionally when prices change, the price elasticity of demand is greater than 1 in absolute value.
question
Inelastic
answer
The quantity demanded changes less than proportionally when price changes, the price elasticity is les than 1 in absolute value.
question
Unit Elastic
answer
when the percentage change in price and quantity demanded are the same
question
Perfectly elastic demand
answer
Horizontal lines
question
Perfectly inelastic demand
answer
vertical lines
question
Total Revenue
answer
Total amount of funds received by a seller of a good or service.
question
Cross-price elasticity of demand
answer
Is equal to the percentage change in the quantity demanded of one good divided by the percentage change in the price of another good.
question
Income elasticity of demand
answer
is equal to the percentage change in the quantity demanded divided by the percentage change in income
question
Price elasticity of supply
answer
equal to the percentage change in quantity supplied divided by the percentage change in price.
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question
Elasticity
answer
Measures how much one economic variable response to changes in another economic variable
question
Price elasticity of demand
answer
Measures how responsive the quantity demanded is to changes in price
question
Elastic
answer
quantity demanded changes more than proportionally when prices change, the price elasticity of demand is greater than 1 in absolute value.
question
Inelastic
answer
The quantity demanded changes less than proportionally when price changes, the price elasticity is les than 1 in absolute value.
question
Unit Elastic
answer
when the percentage change in price and quantity demanded are the same
question
Perfectly elastic demand
answer
Horizontal lines
question
Perfectly inelastic demand
answer
vertical lines
question
Total Revenue
answer
Total amount of funds received by a seller of a good or service.
question
Cross-price elasticity of demand
answer
Is equal to the percentage change in the quantity demanded of one good divided by the percentage change in the price of another good.
question
Income elasticity of demand
answer
is equal to the percentage change in the quantity demanded divided by the percentage change in income
question
Price elasticity of supply
answer
equal to the percentage change in quantity supplied divided by the percentage change in price.

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