ECON 1000 Chapter Notes - Chapter 5: Midpoint Method, Substitute Good, Margarine

19 views4 pages

erinchinchilla572

29 Jul 2015

School

Department

Course

Professor

For unlimited access to Textbook Notes, a Class+ subscription is required.

Document Summary

Elasticity- a measure of the responsiveness of quantity demanded or quantity supplied to one of its determinants. Total revenue- the amount paid by buyers and received by sellers of a good, computer as the price of the good times the quantity sold. Income elasticity of demand- a measure of how much the quantity demanded of a good responds to a change in consumers" income, computer as the percentage change in quantity demanded by the percentage change in income. The price of elasticity of demand measures how much the quantity demanded responds to the changes in the price. Demand tends to be more elastic is close substitutes are available, if the good is a luxury rather than a necessity, if the market is narrowly defined, or if buyers have substantial time to react to a price change. The price of elasticity of demand is calculated as the percentage change in quantity demanded divided by the percentage change in price.

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.

coffeehornet269

8) The price elasticity of demand equals magnitude of the in the divided by the _in the A) percentage change; quantity demanded; percentage change; quantity supplied B) percentage change; quantity demanded; percentage change; price C) change; price; change; quantity demanded D) change; quantity demanded; change; price E) percentage change; price; percentage change; quantity demanded

70) The income elasticity of demand equals the percentage change in A) price divided by the percentage change in income. B) price divided by the percentage change in quantity demanded. C) income divided by the percentage change in quantity demanded. D) quantity demanded divided by the percentage change in income. E) quantity demanded divided by the percentage change in price

ECON 1000 Chapter Notes - Chapter 5: Midpoint Method, Substitute Good, Margarine

Document Summary

Get access

Related Documents

ECON 1000 Lecture Notes - Lecture 5: Normal Good, Complementary Good, Inferior Good

ECON 1000 Lecture Notes - Lecture 5: Market Power, Longrun, Midpoint Method

ECON 1000 Lecture Notes - Lecture 6: Demand Curve, Former State Routes In Pennsylvania, Time Horizon

Related Questions