Term
| Price Elasticity of Demand |
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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. |
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Term
| Price Elasticity of Demand (midpoint formula) |
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Definition
| ((Q2-Q1)/((Q1+Q2)/2))/((P2-P1)/((P1+P2)/2)) |
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Term
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Definition
| abs val is greater than one. |
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Term
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Definition
| abs val is less than one. |
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Term
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Definition
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Term
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Definition
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Term
| Perfectly Inelastic Demand |
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Definition
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Term
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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. |
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Term
| Cross-Price Elasticity of Demand |
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Definition
| The percentage change in quantity demanded of one good divided by the percentage change in the price of another good. |
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Term
| Income Elasticity of Demand |
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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. |
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Term
| Price Elasticity of Supply |
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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. |
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