ECON 3300 Lecture Notes - Lecture 6: Demand Curve, Economic Equilibrium, Inferior Good

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31 May 2020

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Suppose you"re told that following a price increase, quantity demanded fell by 10 percent. She tells one of her suppliers that she is willing to pay for a pair of wool hand warmers and not a dime more. If raising the price of gasoline would cause the owner to receive less total revenue from the sale of gasoline, the demand for gasoline is: perfectly inelastic, unit elastic, elastic, inelastic. Over what range of prices is the demand elastic: over the entire range of prices, between and , between and , between and , refer to table 6-1. What happens to sales revenue if the price of canned soup rises: it rises by 1. 62 percent, it falls, it falls by 162 percent, it rises, suppose the demand for milk is relatively inelastic. This year, his household income fell to ,000 and sefton purchased 80 pounds of potatoes.

Related Questions

interval (or arc) elasticity

cross-price elasticity

price elasticity of demand

elastic demand

income elasticity

inelastic demand

inframarginal units

marginal revenue

point elasticity

price effect

quantity effect

total revenue

unitary elastic demand

1. __________________ A measure of consumersâ sensitivity or responsiveness to changes in the price of a good or service.

2. ___________________ When the percentage change in price (in absolute value) is more than the percentage change in quantity demanded (in absolute value).

3. ___________________ When the percentage change in quantity demanded (in absolute value) is more than the percentage change in price (in absolute value).

4. ___________________ When the percentage change in quantity demanded (in absolute value) is just equal to the percentage change in price (in absolute value).

5. ___________________ Total amount paid to a producer for a good or service P * Q.

6. ___________________ The effect on total revenue of a change in price, holding quantity constant.

7. ___________________ The effect on total revenue of a change in quantity, holding price constant.

8. ___________________ An elasticity calculated over an interval of a demand curve or demand schedule.

9. ___________________ Elasticity at a specific price or point on a demand curve.

10. ___________________ A measure of how responsive quantity demanded is to a change in income, all other things constant.

11. ___________________ A measure showing how responsive the quantity demanded of one good is to changes in the price of another good, other factors constant.

12. ___________________ The additional revenue received by producing and selling one more unit of output.

13. ___________________ Units of output that could have been sold at a higher price had the firm not lowered its price to sell additional (marginal) units.