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Economics Exam 2

Terms in this set (25)

Case of elastic demand
TR and QD are _________ correlated
TR and P are _____________ correlated
Revenue is driven by ___________
- positive
- inversely
- QD
case of inelastic demand
TR and QD are _________ correlated
TR and P are _____________ correlated
Revenue is driven by ___________
- inversely
- positively
- prices
o < 0 case of
inferior products
o > 0 case of
superior products
0 < o < 1 ...... What kind of product?
necessity
o > 1 ...... What kind of product?
luxury
E < 0 ...... What kind of product?
normal
E > 0 ...... What kind of product?
giffen
W equation
% change in QS / % change in P
not binding price floor ...... results in __________
- a price floor that is set below the market equilibrium price
- market clearance
binding price floor ...... results in __________
- a price floor that is set above the market price equilibrium
- excess supply
not binding price ceiling ...... results in __________
- a price ceiling that is set above the market equilibrium price
- market clearance
not binding price floor/ceiling result in
market clearance
binding price floor/ceiling result in
excess
binding price ceiling ...... results in __________
- a price ceiling that is set below the market equilibrium price
- excess demand
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