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Ch. 5-Elasticity and its Application
N/A
6
Economics
Undergraduate 2
12/07/2015

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Term
Price Elasticity of Supply
Definition
A measure of how much the quantity supplied of a good responds to a change in the price of that good, computed as the percentage change in quantity supplied divided by the percentage change in price.
Term
Price Elasticity of Demand
Definition
A measure of how much the quantity demanded of a good responds to the change in price of that good, computed as the percentage change in quantity demanded divided by the percentage change in price.
Term
Total Revenue
Definition
The amount paid by buyers & seller of a good, computed as the price of the good times the quantity sold.
Term
Income Elasticity of Demand
Definition
A measure of how much the quantity demanded of a good responds to a change in consumers' income, computed as the percentage change in quantity demanded divided by the percentage change in income.
Term
Elasticity
Definition
A measure of the responsiveness of quantity demanded or quantity supplied to a change in one of its determinants.
Term
Cross-Price Elasticity of Demand
Definition
A measure of how much the quantity demanded of one good responds to a change in the price of another good, computed as the percentage change in quantity demanded of the first good divided by the percentage change in the price of the second good.
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