# Shared Flashcard Set

## Details

Chapter 4 Parkin & Bade
terms
14
Economics
Undergraduate 1
12/07/2015

## Cards Return to Set Details

Term
 price elasticity of demand
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.
Term
 perfectly inelastic demand
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 ______________________.
Term
 unit elastic demand
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_______________________.
Term
 inelastic demand
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_________________.
Term
 perfectly elastic demand
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 __________________.
Term
 elastic demand
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 __________________.
Term
 total revenue
Definition
 The ______________ from the sale of a good equals the price of the good multiplied by the quantity sold.
Term
 total revenue
Definition
 The ________________ test is a method of estimating the price elasticity of demand by observing the change in total revenuethat results from a change in the price, when all other influences on the quantity sold remain the same.
Term
 income elasticity of demand
Definition
 The ________________ is a measure of theresponsiveness 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.
Term
 cross elasticity of demand
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.
Term
 elasticity of supply
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.
Term
 momentary supply
Definition
 When the price of a good changes, the immediate response of the quantity supplied is determined by the _______________ of that good.
Term
 short-run supply
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 _________________.
Term
 long-run supply
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 _________________ .
Supporting users have an ad free experience!