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Study sets matching "microeconomics elasticity"

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Study sets matching "microeconomics elasticity"

14 terms
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…
29 terms
Microeconomics: Elasticity
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…
58 terms
Microeconomics: Elasticity
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…
14 terms
Microeconomics: Elasticity
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…
11 terms
Microeconomics: Elasticity
Elasticity
Elasticity of Demand
When Elasticity of Demand is Greater t…
When Elasticity of Demand is equal to…
Refers to the degree of responsiveness in supply or demand in…
Measure of how does a change in price impact the quantity dem…
...
...
Elasticity
Refers to the degree of responsiveness in supply or demand in…
Elasticity of Demand
Measure of how does a change in price impact the quantity dem…
27 terms
Microeconomics - Elasticity
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…
22 terms
Microeconomics: Elasticity
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
12 terms
Microeconomics: Elasticity
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…
13 terms
Microeconomics- Elasticity
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…
28 terms
Elasticity; microeconomics
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…
15 terms
Microeconomics: Elasticity
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…
54 terms
Microeconomics- elasticity
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
13 terms
Microeconomics, Elasticity
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…
16 terms
Microeconomics (Elasticity)
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…
35 terms
Microeconomics - Elasticities
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…
6 terms
Microeconomics - Elasticities
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…
17 terms
Microeconomics - Elasticities
PED equals zero
PED is less than one
PED equals one
PED is more than one
perfectly inelastic
Price inelastic
unit elastic
Price elastic
PED equals zero
perfectly inelastic
PED is less than one
Price inelastic
40 terms
Microeconomics Elasticities
PED
Negative
PED
Elastic
The responsiveness of demand to a change in price.
PED is always negative or positive
Percentage change in quality demanded/percentage change in pr…
Substitutes - if there are more substitutes demand becomes ...
PED
The responsiveness of demand to a change in price.
Negative
PED is always negative or positive
22 terms
Microeconomics exam 2- Elasticity
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
7 terms
Microeconomics: Elasticities
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…
24 terms
Microeconomics: Supply and Demand/ Elasticity
Microeconomics
Demand
Demand Schedule
Demand Curve
The behavior of individuals and firms in making decisions reg…
The quantity of a good or service consumers are willing able…
Lists the quantities demanded at each price
Shows the demand schedule plotted on a graph... Price=y-axis... Qua…
Microeconomics
The behavior of individuals and firms in making decisions reg…
Demand
The quantity of a good or service consumers are willing able…
28 terms
Microeconomics Chapter 6: Elasticity
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
24 terms
Microeconomics - Chapter 4 - Elasticity
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…
17 terms
Microeconomics: 1.2 Elasticity
Elasticity
Elasticity of Demand
Price Elasticity of Demand (PED)
Price Elastic Demand
a measure of responsiveness, specifically to a change in price.
a measure of how much the demand for a product changes when t…
the responsiveness of demand to a change in price.
a change in price causes a proportionately greater change in…
Elasticity
a measure of responsiveness, specifically to a change in price.
Elasticity of Demand
a measure of how much the demand for a product changes when t…
31 terms
Microeconomics Ch.6: Elasticity
Price Elasticity of Demand
Elastic Demand
Inelastic Demand
Price Elasticity of Demand Midpoint Fo…
Measures buyers' responsiveness to price changes.... %Change in…
Sensitive to price change.... Large change in quantity
Insensitive to price change.... Small change in quantity.
This calculates the average elasticity over a range of price…
Price Elasticity of Demand
Measures buyers' responsiveness to price changes.... %Change in…
Elastic Demand
Sensitive to price change.... Large change in quantity
14 terms
Microeconomics Chapter 5 (Elasticity)
Elasticity
Price Elasticity of Demand
Price of Elasticity of Demand Equation
Perfectly Inelastic Demand
A general concept used to quantify the response in one variab…
The ratio of the percentage of change in quantity demanded to…
% change in quantity demanded / % change in price
Demand in which quantity demanded does not respond at all to…
Elasticity
A general concept used to quantify the response in one variab…
Price Elasticity of Demand
The ratio of the percentage of change in quantity demanded to…
28 terms
Microeconomics Chapter 4: Elasticity
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
18 terms
Microeconomics Ch. 5 Elasticity
Elasticity
Price of elasticity of demand
Income elasticity of demand
Price elasticity of demand
Measure of responsiveness to changes in price or income ... Con…
Measures responsiveness of quantity demanded to price... Connec…
Measure of responsiveness of demand to income... Connection: th…
the ratio of the percent change in the quantity demanded to t…
Elasticity
Measure of responsiveness to changes in price or income ... Con…
Price of elasticity of demand
Measures responsiveness of quantity demanded to price... Connec…
13 terms
Microeconomics Chapter 6: Elasticity
elasticity
price-elasticity coefficient and formula
midpoint formula
elastic
the buyers response to price change
percentage change in quantity of demanded of product x/ perce…
Ed = (Change in quanity/ [sum of quantities/2]) / (change in…
the buyer responds to price change
elasticity
the buyers response to price change
price-elasticity coefficient and formula
percentage change in quantity of demanded of product x/ perce…
17 terms
Microeconomics Chapter 6: Elasticity
price elasticity of demand
price-elasticity coefficient and formula
midpoint formula
elastic
the responsiveness or sensitivity of consumers to a price cha…
economists measure the degree to which deamnd is price elasti…
Ed = (Change in quanity/ [sum of quantities/2]) / (change in…
when demand is changed bby a specific percentage change in pr…
price elasticity of demand
the responsiveness or sensitivity of consumers to a price cha…
price-elasticity coefficient and formula
economists measure the degree to which deamnd is price elasti…
11 terms
Microeconomics: Chapter 5- Elasticity
Elasticity
Price Elasticity of Demand
Determinants of the Elasticity of Demand
Total Revenue and Elasticity of Demand
How much one variable changes in response to another.
How much quantity demanded responds to a change in price.
1. Close substitutes- higher elasticity... 2. Narrowly defined g…
With inelastic demand, TR follows the price (i.e. price falls…
Elasticity
How much one variable changes in response to another.
Price Elasticity of Demand
How much quantity demanded responds to a change in price.
13 terms
Microeconomics Ch.5. Elasticity
Elasticity
Price elasticity of demand
Perfectly inelastic demand
Perfectly elastic demand
A general concept used to quantify the response in one variab…
The ration of the percentage of change in quantity demanded t…
Demand in which quantity demanded does not respond at all to…
Demand in which quantity drops to zero at the slightest incre…
Elasticity
A general concept used to quantify the response in one variab…
Price elasticity of demand
The ration of the percentage of change in quantity demanded t…
10 terms
Microeconomics Q&A - Elasticity
Do you think the price elasticity of d…
Do you think the price elasticity of d…
Do you think the price elasticity of d…
Do you think the price elasticity of d…
The price elasticity of demand for Ford SUVs will decrease be…
The price elasticity of demand for Ford SUVs will increase be…
The price elasticity of demand for Ford SUVs will increase be…
Nothing
Do you think the price elasticity of d…
The price elasticity of demand for Ford SUVs will decrease be…
Do you think the price elasticity of d…
The price elasticity of demand for Ford SUVs will increase be…
18 terms
Microeconomics Ch 5 Elasticity
Elasticity
Price Elasticity of Demand
perfectly inelastic demand
inelastic demand
A numerical measure of the responsiveness of quantity demande…
Measure of home much quantity demanded responds to a change i…
PED=0
PED<1
Elasticity
A numerical measure of the responsiveness of quantity demande…
Price Elasticity of Demand
Measure of home much quantity demanded responds to a change i…
24 terms
Microeconomics - Chapter 4 - Elasticity
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…
32 terms
microeconomics ch. 6: elasticity
price elasticity of demand
law of demand
elastic demand
inelastic demand
a measure of the responsiveness of consumer to a change in pr…
but how much will quantity demanded change with a change in p…
sensitive to price changes, large change in quantity
insensitive to price changes, small change in quantity
price elasticity of demand
a measure of the responsiveness of consumer to a change in pr…
law of demand
but how much will quantity demanded change with a change in p…
17 terms
Microeconomics - Demand & Supply Elasticity
The price elasticity of demand is equa…
The price elasticity of demand is alwa…
The price elasticity of demand is alwa…
If the price elasticity of demand is e…
the percentage change in quantity demanded divided by the per…
as a unitless dimensionless number
a negative value
inelastic
The price elasticity of demand is equa…
the percentage change in quantity demanded divided by the per…
The price elasticity of demand is alwa…
as a unitless dimensionless number
21 terms
Economics - Microeconomics - Elasticity
Elasticity
Price elasticity of demand (PED)
Price elastic demand
Price inelastic demand
In general, this is a measure of the responsiveness or sensit…
Price elasticity of Demand (PED) is a measure of the responsi…
Relatively high responsiveness of demand to changes in price;…
Relatively low responsiveness of demand to changes in price;…
Elasticity
In general, this is a measure of the responsiveness or sensit…
Price elasticity of demand (PED)
Price elasticity of Demand (PED) is a measure of the responsi…
17 terms
Unit 1 Microeconomics - Elasticity vocabulary
Complementary goods (complements)
Cross price elasticity of demand (XED)
Elastic demand (cross-price):
Elastic demand (income):
goods which are used together, such as DVD players and DVD di…
is a measure of responsiveness of the quantity demanded for a…
where a change in the price of one good will cause a proporti…
where a change in the income of consumers will cause a propor…
Complementary goods (complements)
goods which are used together, such as DVD players and DVD di…
Cross price elasticity of demand (XED)
is a measure of responsiveness of the quantity demanded for a…
20 terms
Microeconomics Connect: 6 Elasticity
Why do dealers make buyers haggle with…
Lorena likes to play golf. The number…
ADVANCED ANALYSIS Currently, at a pric…
What is the formula for measuring the…
Dealers make buyers haggle over the price of a car because th…
Using the data under D1 and D2, calculate the cross elasticit…
a. How many popsicles will be sold each day in the short run…
Percentage change in quantity supplied/Percentage change in p…
Why do dealers make buyers haggle with…
Dealers make buyers haggle over the price of a car because th…
Lorena likes to play golf. The number…
Using the data under D1 and D2, calculate the cross elasticit…
27 terms
Microeconomics Midterm #1: Elasticity
Elasticity
Change it causes on the graph: Price E…
Change it causes on the graph: Price E…
Change it causes on the graph: Income…
degree of responsiveness/sensitivity
movement along the curve
movement along the curve
shift along the curve
Elasticity
degree of responsiveness/sensitivity
Change it causes on the graph: Price E…
movement along the curve
13 terms
Microeconomics exam #1 (elasticity)
What do economist mean by the term ela…
Whats the diffrence btwn elastic deman…
how would an perfectly inelastic deman…
how would an perfectly elastic demand…
responsiveness of consumers (and procedures) to a change in p…
elastic demand- very responsive consumers... inelastic demand- u…
would go up and down (north and south)
would go horizontally (east to west)
What do economist mean by the term ela…
responsiveness of consumers (and procedures) to a change in p…
Whats the diffrence btwn elastic deman…
elastic demand- very responsive consumers... inelastic demand- u…
52 terms
Microeconomics: Elasticity of Demand and Supply
Elasticity:
Price of Elasticity of Demand:
Determinants of Price Elasticity of De…
Determinants of Price Elasticity of De…
Measures how one variable responds to changes in another vari…
The sensitivity of quantity demanded to changes in price.... -Wh…
1. Necessities and luxuries... -toothpaste is a necessity... -Hair…
2. Substitues... -Fish VS chicken... -Pork VS beef... -Holiday VS bp…
Elasticity:
Measures how one variable responds to changes in another vari…
Price of Elasticity of Demand:
The sensitivity of quantity demanded to changes in price.... -Wh…
24 terms
Microeconomics - Chapter 4 - Elasticity
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…
8 terms
Microeconomics Ch.6 Elasticity
Perfectly Inelastic
Perfectly Elastic
Two straight-line demand curves
Income Ilasticity
Regardless of price, quantity demanded is the same; i.e insulin
Because there are so many producers in the market, a slight i…
neither perfectly elastic nor perfectly inelastic.
When income rises, demand shifts out.
Perfectly Inelastic
Regardless of price, quantity demanded is the same; i.e insulin
Perfectly Elastic
Because there are so many producers in the market, a slight i…
43 terms
Microeconomics Elasticity and and Utility Usage
Price elasticity of demand
Perfectly inelastic demand
Unity elastic demand
Inelastic demand
is a units free measure of the responsiveness of the quantity…
if quantity demanded remains constant when the prices changes…
If the percentage change in quantity demanded equals the perc…
the price elasticity of demand is between zero and 1
Price elasticity of demand
is a units free measure of the responsiveness of the quantity…
Perfectly inelastic demand
if quantity demanded remains constant when the prices changes…
35 terms
Microeconomics Chapter 6 Elasticity
Price elasticity of demand
Midpoint formula
Elastic
Inelastic
the responsiveness (or sensitivity) of consumers to a price c…
used for calculating elasticity
if demand is a specific percentage change in price results in…
if a specific percentage change in price produces a smaller p…
Price elasticity of demand
the responsiveness (or sensitivity) of consumers to a price c…
Midpoint formula
used for calculating elasticity
16 terms
Microeconomics Chapter 4 - Elasticity
Price Elasticity of Demand
Midpoint Formula
Elastic Demand
Inelastic Demand
the responsiveness or sensitivity of consumers to a price ran…
this formula simply averages the two prices and the two quant…
if a specific percentage change in price results in a larger…
if a specific percentage change in price produces a smaller p…
Price Elasticity of Demand
the responsiveness or sensitivity of consumers to a price ran…
Midpoint Formula
this formula simply averages the two prices and the two quant…
30 terms
Microeconomics Chapter 6 Elasticity
Price Elasticity of Demand
Use percentages
Elastic Demand
Inelastic Demand
the responsiveness or sensitivity of consumers to a price cha…
choice of units, currency, compare changes of products in pri…
if a specific percentage change in price results in a larger…
percentage change in price produces a smaller percentage chan…
Price Elasticity of Demand
the responsiveness or sensitivity of consumers to a price cha…
Use percentages
choice of units, currency, compare changes of products in pri…
15 terms
Microeconomics: Chapter 6 Elasticity
Cross price elasticity of demand
Elastic demand
Income elasticity of demand
Income elastic demand
A measure of the effect of the change in the price of one goo…
The case in which the price elasticity of demand is greater t…
The percent chaden in the quantity of a good demanded when a…
The case in which the income elasticity of demand for a good…
Cross price elasticity of demand
A measure of the effect of the change in the price of one goo…
Elastic demand
The case in which the price elasticity of demand is greater t…
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