# Study sets matching "microeconomics elasticity"

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Law of demand and price elasticity of d…

How do you calculate elasticity?

What is the midpoint rule?

What are the categories of elasticity?

- As price goes up, quantity demanded goes down.... - When the pr…

% changes are an average of starting and ending values

- Elastic Demand: ED > 1 leads to % ΔQD > % ΔP... - Inelastic Dem…

Law of demand and price elasticity of d…

- As price goes up, quantity demanded goes down.... - When the pr…

How do you calculate elasticity?

Elasticity

Price elasticity of demand

Formula, take absolute value

Midpoint formula: used for elasticity o…

the measure used by economists to determine the responsiveness…

measures the responsiveness of quantity demanded to changes in…

%∆ quantity demanded / %∆ price

[(Q2 - Q1)/ (Q1 + Q2 / 2)] / [(P2 - P1)/(P1 + P2 /2)]

Elasticity

the measure used by economists to determine the responsiveness…

Price elasticity of demand

measures the responsiveness of quantity demanded to changes in…

Elasticity formula

Elasticity Measures

Elasticity of Demand

Elasticity of Supply

Mid-Point Formula

How responsive is the dependent variable to the independent va…

Own Price; [% Change in Q/ % Change in P]... Decrease/Increase

% Change in Qs/ % Change in P... Increase/Increase

Elasticity formula

Mid-Point Formula

Elasticity Measures

How responsive is the dependent variable to the independent va…

Price elesticity of demand

Price elasticity formula

Unit elasticity

Elastic demand

The responsiveness of consumers to a price change

Change in quantity demanded/ original quantity demanded •\• ch…

When the amount demanded & change of price percentages are the…

Modest price change causes large changes in quantity purchased

Price elesticity of demand

The responsiveness of consumers to a price change

Price elasticity formula

Change in quantity demanded/ original quantity demanded •\• ch…

Elasticity

Elasticity =

Price elasticity of demand

Percent change in Quantity demanded = (…

A measure of how responsive one variable is to a change in ano…

% change in quantity / % change in price

A measure of how responsive quantity demanded is to a change i…

(Q2-Q1)... ___________ x 100... Q1

Elasticity

A measure of how responsive one variable is to a change in ano…

Elasticity =

% change in quantity / % change in price

What is utility?

What is the Law of Diminishing Utility?

What is Utility Maximization?

What is a Util?

The satisfaction gained from consuming a good

As consumption increases, the marginal utility obtained from e…

Consumer allocates her income so that the last dollar spent on…

One unit of satisfaction

What is utility?

The satisfaction gained from consuming a good

What is the Law of Diminishing Utility?

As consumption increases, the marginal utility obtained from e…

PED (Price Elasticity of Demand)

PED (equation)

Perfectly Inelastic

Inelastic

the degree of responsiveness of the quantity demanded of a pro…

% change in Qd / % change in P

consumers are willing and able to buy the same quantity regard…

the change in price will lead to a proportionally smaller chan…

PED (Price Elasticity of Demand)

the degree of responsiveness of the quantity demanded of a pro…

PED (equation)

% change in Qd / % change in P

Price elasticity of demand

Elastic demand

Inelastic demand

Price elasticity of demand equation

Degree of responsiveness or sensitivity of consumers to a chan…

when consumers are relatively responsive to price changes

Consumers are relatively unresponsive to price changes

Average percentage change in quantity demand over the average…

Price elasticity of demand

Degree of responsiveness or sensitivity of consumers to a chan…

Elastic demand

when consumers are relatively responsive to price changes

Price elasticity of demand (PED)

Elastic demand

Inelastic demand

Cross elasticity of demand (XED)

is a measure of the responsiveness of the quantity demanded of…

means that a change in the price of a good or service will cau…

means that a change in price of a good or service will cause a…

is a measure of the responsiveness of the demand for a good or…

Price elasticity of demand (PED)

is a measure of the responsiveness of the quantity demanded of…

Elastic demand

means that a change in the price of a good or service will cau…

Elasticity

Elastic

Inelastic

Price elasticity of demand (PED)... Cross…

The responsiveness of an economic variable, when another econo…

means that when the price goes up, consumers' buying habits de…

means that when the price goes up, consumers' buying habits st…

Types of elasticity

Elasticity

The responsiveness of an economic variable, when another econo…

Elastic

means that when the price goes up, consumers' buying habits de…

Elasticity

The price elasticity of demand

Price elasticity of demand, greater tha…

price elasticity of demand, less than 1

measures the strength of the buyers response to a change in a…

percent change in Quanity demanded of good x/ percent change i…

elastic

inelastic

Elasticity

measures the strength of the buyers response to a change in a…

The price elasticity of demand

percent change in Quanity demanded of good x/ percent change i…

Cross-price elasticity (XED)

Substitute Goods (in XED)

Complementary Goods (in XED)

Income Elasticity (YED)

A measure of the consumer's responsiveness of one good to a ch…

Positive XED value... - increase in price of one, leads to an inc…

Negative XED value... - increase in price of one, leads to a decr…

A measure of responsiveness of the consumer's demand for a par…

Cross-price elasticity (XED)

A measure of the consumer's responsiveness of one good to a ch…

Substitute Goods (in XED)

Positive XED value... - increase in price of one, leads to an inc…

PED

PED formula

D=inelastic

D=elastic

Measures the responsiveness of quantity demanded due to a chan…

%🔺QD / %🔺Price

An increase in price will lead to an increase in revenue ... A c…

An increase in price will lead to a fall in revenue.... A change…

PED

Measures the responsiveness of quantity demanded due to a chan…

PED formula

%🔺QD / %🔺Price

When the demand for a good is elastic,…

The midpoint formula for calculating el…

If the quantity supplied by producers i…

The change in quantity, divided by the…

Total

Averages

Relatively price inelastic

Mid-point

When the demand for a good is elastic,…

Total

The midpoint formula for calculating el…

Averages

Total Revenue

Unit Elastic

Utility

Elastic

The price of a good or service multiplied by the quantity sold…

Describes percentage change in quantity that is equal to perce…

The want satisfying power that goods and service provide. The…

If the quantity change is relatively large compared to price c…

Total Revenue

The price of a good or service multiplied by the quantity sold…

Unit Elastic

Describes percentage change in quantity that is equal to perce…

3.1 Price elasticity of demand

3.2 Cross-price elasticity of demand

3.3 Income elasticity of demand

3.3 Income elasticity demand

Measure of the responsiveness of the quantity of a good demand…

Measure of the responsiveness of demand for one good to a chan…

Measure of the responsiveness of demand to changes in income,…

A percentage increase in income produces a smaller percentage…

3.1 Price elasticity of demand

Measure of the responsiveness of the quantity of a good demand…

3.2 Cross-price elasticity of demand

Measure of the responsiveness of demand for one good to a chan…

Price elasticity of demand (PED) is a m…

Since price and quantity demanded are n…

On any downward-sloping demand curve, d…

Number and closeness of substitutes... -Th…

Explain the concept of price elasticity of demand, understandi…

State that the PED value is treated as if it were positive, al…

Explain why PED varies along a straight line demand curve and…

Explain the determinants of PED including the number and close…

Price elasticity of demand (PED) is a m…

Explain the concept of price elasticity of demand, understandi…

Since price and quantity demanded are n…

State that the PED value is treated as if it were positive, al…

Microeconomics

Demand

Demand Schedule

Demand Curve

The behavior of individuals and firms in making decisions rega…

The quantity of a good or service consumers are willing able t…

Lists the quantities demanded at each price

Shows the demand schedule plotted on a graph... Price=y-axis... Quan…

Microeconomics

The behavior of individuals and firms in making decisions rega…

Demand

The quantity of a good or service consumers are willing able t…

Inelastic demand

Elastic demand

Formula for computing demand elasticity

Perfectly inelastic demand

- Quantity demanded is very unresponsive to changes in price... -…

- Quantity demanded is very responsive to a change in the prod…

(change in quantity demanded ÷ average quantity demanded) ÷ (c…

- Occurs when a change in price leads to no change in quantity…

Inelastic demand

- Quantity demanded is very unresponsive to changes in price... -…

Elastic demand

- Quantity demanded is very responsive to a change in the prod…

price elasticity of demand

price-elasticity coefficient and formula

midpoint formula

elastic

the responsiveness or sensitivity of consumers to a price chan…

economists measure the degree to which deamnd is price elastic…

Ed = (Change in quanity/ [sum of quantities/2]) / (change in p…

when demand is changed bby a specific percentage change in pri…

price elasticity of demand

the responsiveness or sensitivity of consumers to a price chan…

price-elasticity coefficient and formula

economists measure the degree to which deamnd is price elastic…

Price elasticity of demand (PED)

PED Equation

Price elastic demand

Price inelastic demand

the measure and the responsiveness of the quantity demanded of…

PED = % change in Qd (quantity demanded) / % change in P (pric…

PED >1 this means that a small percentage change in price caus…

0<PED<1 this means that a large percentage change in price cau…

Price elasticity of demand (PED)

the measure and the responsiveness of the quantity demanded of…

PED Equation

PED = % change in Qd (quantity demanded) / % change in P (pric…

Microeconomics

Demand

Demand Schedule

Demand Curve

The behavior of individuals and firms in making decisions rega…

The quantity of a good or service consumers are willing able t…

Lists the quantities demanded at each price

Shows the demand schedule plotted on a graph... Price=y-axis... Quan…

Microeconomics

The behavior of individuals and firms in making decisions rega…

Demand

The quantity of a good or service consumers are willing able t…

What is the Price elasticity of demand?

Describe what it means when a product i…

What is the

**simple**formula to measure…For the formula above, how do you find…

-The measure of the sensitivity of buyers to a change in price…

Relatively Elastic: When consumers are highly responsive to pr…

Ed= (Percent change in quantity demanded for product X) / (per…

%∆Qd= the change in quantity demanded

**divided**d* by the origina…What is the Price elasticity of demand?

-The measure of the sensitivity of buyers to a change in price…

Describe what it means when a product i…

Relatively Elastic: When consumers are highly responsive to pr…