#### Study sets matching "microeconomics elasticity"

#### Study sets matching "microeconomics elasticity"

price elasticity of demand

elastic demand

inelastic demand

unit elastic demand or supply

Quantity demanded changes with the price

Consumers buy more or less of a product when the price change…

Demand does not significantly increase or decrease with a cha…

Ed =1 Sd =1; ... EX: 20% change in price = 20% change in supply…

price elasticity of demand

Quantity demanded changes with the price

elastic demand

Consumers buy more or less of a product when the price change…

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 •\• c…

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

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 •\• c…

Elasticity

Price elasticity of demand

Formula, take absolute value

Midpoint formula: used for elasticity…

the measure used by economists to determine the responsivenes…

measures the responsiveness of quantity demanded to changes i…

%∆ quantity demanded / %∆ price

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

Elasticity

the measure used by economists to determine the responsivenes…

Price elasticity of demand

measures the responsiveness of quantity demanded to changes i…

Elasticity formula

Elasticity Measures

Elasticity of Demand

Elasticity of Supply

Mid-Point Formula

How responsive is the dependent variable to the independent v…

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 v…

Elasticity

Elasticity =

Price elasticity of demand

Percent change in Quantity demanded =…

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

% change in quantity / % change in price

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

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

Elasticity

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

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…

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

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…

Law of demand and price elasticity of…

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 p…

% changes are an average of starting and ending values

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

Law of demand and price elasticity of…

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

How do you calculate elasticity?

Elasticity

The price elasticity of demand

Price elasticity of demand, greater th…

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…

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…

Elasticity

Inelastic

Elastic

Unit elastic

Elasticity of demand with respect to its own price a.k.a. Sen…

As Price increases, quantity demanded slightly decreases, not…

As price increases, quantity demanded decreases a lot, very s…

Coefficient is 1, neither elastic or inelastic

Elasticity

Elasticity of demand with respect to its own price a.k.a. Sen…

Inelastic

As Price increases, quantity demanded slightly decreases, not…

Price elasticity of demand

Elastic demand

Inelastic demand

Price elasticity of demand equation

Degree of responsiveness or sensitivity of consumers to a cha…

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 cha…

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 o…

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

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

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

Price elasticity of demand (PED)

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

Elastic demand

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

Price elasticity of demand

Price elasticity of suppy

Between 0 and -1

1

Responsiveness of demand of a product following a change in i…

Relationship between the change in quantity supplied and a ch…

Price inelastic demand

Unitary price elasticity of demand

Price elasticity of demand

Responsiveness of demand of a product following a change in i…

Price elasticity of suppy

Relationship between the change in quantity supplied and a ch…

When the demand for a good is elastic,…

The midpoint formula for calculating e…

If the quantity supplied by producers…

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 e…

Averages

Price elasticity of demand

Elastic demand

Inelastic demand

Unit elastic demand

Measures how much demand changes in response to a change in p…

A percentage change in price causes a greater percentage chan…

A percentage change in price causes a smaller percentage chan…

A percentage change in price causes an equal percentage chang…

Price elasticity of demand

Measures how much demand changes in response to a change in p…

Elastic demand

A percentage change in price causes a greater percentage chan…

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 c…

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

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

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

Cross-price elasticity (XED)

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

Substitute Goods (in XED)

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

PED

PED formula

D=inelastic

D=elastic

Measures the responsiveness of quantity demanded due to a cha…

%🔺QD / %🔺Price

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

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

PED

Measures the responsiveness of quantity demanded due to a cha…

PED formula

%🔺QD / %🔺Price

PED (Price Elasticity of Demand)

PED (equation)

Perfectly Inelastic

Inelastic

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

% change in Qd / % change in P

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

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

PED (Price Elasticity of Demand)

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

PED (equation)

% change in Qd / % change in P

Price Elasticity of Demand

% Change in Quantity Demanded (Without…

% Change in Price (No Midpoint Method)…

Price Elasticity of Demand (No Midpoin…

the ratio of the percent change in quantity demanded to the p…

= ( new QD - old QD / old QD ) * 100

= ( new P - old P / old P ) * 100 P is Price

= % change in quantity demanded / % change in price

Price Elasticity of Demand

the ratio of the percent change in quantity demanded to the p…

% Change in Quantity Demanded (Without…

= ( new QD - old QD / old QD ) * 100

Price Elasticity

MidPoint Formula - How to calculate th…

Price Elasticity of Demand Coefficients

Price Elasticity of Demand

Measures the responsiveness or sensitivity of consumers to a…

MIDPOINT FORMULA... Q1 - Q0... (Q1+Q0)/2... ____________... P1-P0... (P1+P0…

Ed>, Ed< 1 and Ed = 1

Formula/Mathmatical Symbol: ... Elasticity = the percentage cha…

Price Elasticity

Measures the responsiveness or sensitivity of consumers to a…

MidPoint Formula - How to calculate th…

MIDPOINT FORMULA... Q1 - Q0... (Q1+Q0)/2... ____________... P1-P0... (P1+P0…

Elasticity

Elastic

Inelastic

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

The responsiveness of an economic variable, when another econ…

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

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

Types of elasticity

Elasticity

The responsiveness of an economic variable, when another econ…

Elastic

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

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 pro…

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

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

Inelastic demand

- Quantity demanded is very unresponsive to changes in price…

Elastic demand

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

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 deman…

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

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 deman…

3.2 Cross-price elasticity of demand

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

deadweight loss

What else does deadweight loss refer to?

Where is the deadweight loss on the gr…

elasticity

the total loss in consumer and producer surplus due to a chan…

excess burden

A measure of the response of one variable to a change in anot…

deadweight loss

the total loss in consumer and producer surplus due to a chan…

What else does deadweight loss refer to?

excess burden

Price elasticity of demand (PED) is a…

Since price and quantity demanded are…

On any downward-sloping demand curve,…

Number and closeness of substitutes... -T…

Explain the concept of price elasticity of demand, understand…

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

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

Explain the determinants of PED including the number and clos…

Price elasticity of demand (PED) is a…

Explain the concept of price elasticity of demand, understand…

Since price and quantity demanded are…

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