Term
| price elasticity of demand |
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Definition
| ____________is a units-free measure of the responsiveness of the quantity demanded of a good to a change in its price when all other influences on buying plans remain the same. |
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Term
| perfectly inelastic demand |
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Definition
| If the quantity demanded remains constant when the price changes, then the price elasticity of demand is zero and the good is said to have a ______________________. |
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Term
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Definition
| If the percentage change in the quantity demanded equals the percentage change in the price, then the price elasticity equals 1 and the good is said to have a_______________________. |
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Term
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Definition
| Between perfectly inelastic demand and unit elastic demand is a general case in which the percentage change in the quantity demanded is less than the percentage change in the price . In this case, the price elasticity of demand is between zero and 1 and the good is said to have an_________________. |
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Term
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Definition
| If the quantity demanded changes by an infinitely large percentage in response to a tiny price change, then the price elasticity of demand is infinity and the good is said to have a __________________. |
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Term
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Definition
| Between unit elastic demand and perfectly elastic demand is another general case in which the percentage change in the quantity demanded exceeds the percentage change in price . In this case, the price elasticity of demand is greater than 1 and the good is said to have an __________________. |
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Term
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Definition
| The ______________ from the sale of a good equals the price of the good multiplied by the quantity sold. |
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Term
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Definition
The ________________ test is a method of estimating the price elasticity of demand by observing the change in total revenue
that results from a change in the price, when all other influences on the quantity sold remain the same. |
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Term
| income elasticity of demand |
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Definition
The ________________ is a measure of the
responsiveness of the demand for a good or service to a change in income, other things remaining the same. It tells us by how much a demand curve shifts at a given price. |
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Term
| cross elasticity of demand |
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Definition
| The _________________ is a measure of the responsiveness of the demand for a good to a change in the price of a substitute or complement, other things remaining the same. |
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Term
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Definition
| The __________________ measures the responsiveness of the quantity supplied to a change in the price of a good when all other influences on selling plans remain the same. |
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Term
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Definition
| When the price of a good changes, the immediate response of the quantity supplied is determined by the _______________ of that good. |
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Term
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Definition
| The response of the quantity supplied to a price change when only some of the possible adjustments to production can be made is determined by _________________. |
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Term
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Definition
| The response of the quantity supplied to a price change after all the technologically possible ways of adjusting supply have been exploited is determined by _________________ . |
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