# Study sets matching "microeconomics elasticity"

Study sets

Diagrams

Classes

Users

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…

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…

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…

Price Elasticity of Demand

Larger Price of Elasticity of Demand

Midpoint method

Perfectly Inelastic Price of Demand

Ratio of the percent change in the quantity demanded to the pe…

More responsive the quantity demanded to the price

Technique for calculating the percent change by calculating ch…

When the quantity demanded does not respond at all to changes…

Price Elasticity of Demand

Ratio of the percent change in the quantity demanded to the pe…

Larger Price of Elasticity of Demand

More responsive the quantity demanded to the price

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

Law of Demand

Demand Curve

Percentage Change in q

Consumer's response to a change in price... E = % change in quan…

The quantity of a good demanded in a given time period increas…

A curve describing the quantities of a good a consumer is will…

...

Price Elasticity

Consumer's response to a change in price... E = % change in quan…

Law of Demand

The quantity of a good demanded in a given time period increas…

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

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

Elasticity

"The A elasticity of B." What is A and…

What does "The price elasticity of dema…

What does "The wage elasticity of suppl…

A measurement of the responsiveness of one economic factor to…

b: responding factor (demand, supply)... a: initial changing fact…

It measures the responsiveness of changes in quantity demanded…

It measures the responsiveness of quantity supplied to changes…

Elasticity

A measurement of the responsiveness of one economic factor to…

"The A elasticity of B." What is A and…

b: responding factor (demand, supply)... a: initial changing fact…

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…

Elastic

inelastic demand

price elasticity of demand

Income Elasticity of Demand

% change of quantity demanded is greater than % change of price

% change of quantity demanded is less than % change of price

ep= %change in quantity demanded over % change in price

Responsiveness of quantity demanded for a good or service to a…

Elastic

% change of quantity demanded is greater than % change of price

inelastic demand

% change of quantity demanded is less than % change of price

Elasticity

Price elasticity of demand equation

Inelastic curve is?

Elastic curve is?

a measure of how responsive market participants are to changes…

% change quantity demanded / % change price

Steeper

Flatter

Elasticity

a measure of how responsive market participants are to changes…

Price elasticity of demand equation

% change quantity demanded / % change price

price responsiveness (unresponsive)

price elasticity of demand

Formula for price elasticity of demand

Larger the price elasticity of demand

a large increase in the price leave the quantity demanded by a…

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

% change in quantity demanded / % change in price

More responsive to a change in price = more elastic

price responsiveness (unresponsive)

a large increase in the price leave the quantity demanded by a…

price elasticity of demand

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

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…

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…

Elasticity

Price Elasticity of Demand

perfectly inelastic demand

inelastic demand

A numerical measure of the responsiveness of quantity demanded…

Measure of home much quantity demanded responds to a change in…

PED=0

PED<1

Elasticity

A numerical measure of the responsiveness of quantity demanded…

Price Elasticity of Demand

Measure of home much quantity demanded responds to a change in…

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…

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…