Term
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Definition
| responsive demand to price increase |
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Term
| an increase in the price leads to a decrease in the ____ _____ |
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Definition
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Term
| the greater the absolute price elasticity of demand..... |
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Definition
| the greater the demand responsiveness to relative price changes |
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Term
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Definition
| whenever the price of elasticity of demand is greater than 1 |
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Term
| unit elasticity of demand |
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Definition
| change in price of 1% causing exactly 1% change in the quantity demanded |
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Term
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Definition
| change in price of 1% causing a change of less than 1% in the quantity demanded |
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Term
| perfectly inelastic demand |
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Definition
| demand that has zero responsiveness to price changes. no matter the price, the demand will always be the same |
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Term
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Definition
| demand that has the characteristic that even the slightest increase in price will lead to 0 demand |
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Term
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Definition
| negative relationship that is between changes in price and changes in total revenues. |
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Term
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Definition
| changes in price do not change total revenues |
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Term
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Definition
| if demand is inelastic, price and total revenues move in the same direction |
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Term
| the longer any price change persists, the greater the____ __ _____ |
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Definition
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Term
| elasticity of demand is great in the ___ ___ |
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Definition
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