Flashcards
ECON100 - Chapter 4
Cards in this deck (11)
- 1Elasticity:A measure of how much one economic variable, such as the quantity demanded
of a product, responds to changes in another economic variable, such as the product’s price - 2Price elasticity of demand:The responsiveness of the quantity demanded of a good to a
change in its price. - 3Elastic demand:Demand is elastic when the percentage change in quantity demanded is
greater than the percentage change in price - 4Inelastic demand:Demand is inelastic when the percentage change in quantity demanded is
less than the percentage change in price. - 5Unit-elastic demand:Demand is unit-elastic when the percentage change in quantity
demanded is equal to the percentage change in price - 6Perfectly inelastic demand:Demand is perfectly inelastic when a change in price results in
no change in quantity demanded - 7Perfectly elastic demand:Demand is perfectly elastic when a change in price results in an
infinite change in quantity demanded. - 8Total revenue:The total amount of funds received by a seller of a good or service
- 9Cross-price elasticity of demand:The percentage change in the quantity demanded of one
good divided by the percentage change in the price of another good. - 10Income elasticity of demand:A measure of the responsiveness of quantity demanded to a
change in income. - 11Price elasticity of supply:The responsiveness of the quantity supplied to a change in price
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- Flashcards on ECON100 - Chapter 4, created by Mattheewww - on 25/08/2016.
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