Term
| What is the midpoint formula? |
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Definition
| ((Change in Quantity)/((q0+q1+1)/2))/((Change in Price)/((p0+p1)/2)) |
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Term
| What does midpoint formula do? |
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Definition
| Takes the average elasticity between any two points along a demand function. |
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Term
| What does (Ed^m) represent? |
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Definition
| Elasticity of Demand found through midpoint formula. |
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Term
| How to solve for equilibrium price? |
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Definition
| Set quantity demanded equal to quantity supplied and solve for P. |
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Term
| How to solve for equilibrium quantity? |
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Definition
| Plug the equilibrium price into the quantity supplied or quantity demanded function and solve. |
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Term
| What is the algebraic formula for Elasticity? |
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Definition
| (Slope)*(Price/Quantity Demanded) |
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Term
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Definition
| Ratio of absolute changes of quantity demanded and quantity supplied. |
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Term
What is the slope of this demand function?
Q=A-BP
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Definition
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