Details Title: CHAP 6 ECON 2020 Description: Final Exam Flashcards Total Flash Cards: 11 Created: 05/04/2009 14:56:17		New Users: To study from this flashcard set, or to create your own your own study flash cards, REGISTER HERE. Existing Users: CLICK HERE. Additional Economics Flashcards
Cards in this set: Term Price Elasticity of Demand Definition The responsiveness of the quantity demanded to a change in price, measured by dividing the percentage change in the quantity demanded of a product by the percentage change in the product's price. Term Price Elasticity of Demand (midpoint formula) Definition ((Q2-Q1)/((Q1+Q2)/2))/((P2-P1)/((P1+P2)/2)) Term Elastic Demand Definition abs val is greater than one. Term Inelastic Demand Definition abs val is less than one. Term Unit-Elastic Demand Definition abs val is equal to one. Term Perfectly Elastic Demand Definition equal to infinity. Term Perfectly Inelastic Demand Definition equal to zero. Term Total Revenue Definition The total amount of funds recieved by a seller of a good or service, calculated by multiplying price per unit by the number of units sold. Term Cross-Price Elasticity of Demand Definition The percentage change in quantity demanded of one good divided by the percentage change in the price of another good. Term Income Elasticity of Demand Definition A measure of the responsiveness of quantity demanded to changes in income, measured by the percentage change in quantity demanded divided by the percentage change in income. Term Price Elasticity of Supply Definition The responsiveness of the quantity supplied to a change in price, measured by dividing the percentage change in the quantity supplied of a product by the percentage change in the product's price.