Term
What direction do Supply Curves Move in? 

Definition
Diagonally Up and to the Right 


Term
What direction do Demand Curves Move in? 

Definition
Diagonally Down and to the Right 


Term
When is our first class test? 

Definition


Term
What kind of relationship do price and quantity demanded have? 

Definition


Term
What kind of relationship do price and quantity supplied have? 

Definition


Term
What is Price Elasticity of Demand? 

Definition
Measurement of buyers’ responsiveness to a price change. 


Term
What does Percent of Change of Quantity Demanded Divided by Percent of Change in Price Equal? 

Definition
The Elasticity of Demand aka the price elasticity of demand for the Good. 


Term
If p0=original price, p1=new price, q0=original quantity demanded, and q1=new quantity demanded, then what is the formula for the elasticity of quantity demanded? 

Definition
((q1q0)/q0)/((p1p0)/p0)=The Elasticity of Demand aka the price elasticity of demand for the Good. 


Term
Is Elasticity of Demand a ratio of percentage changes or absolute changes? 

Definition
A ratio of percentage changes. 


Term
Is Slope of a ratio of percentage changes or absolute changes? 

Definition
A ratio of absolute changes. 


Term
Is Elasticity sensitive to monetary units? 

Definition


Term
Let’s say p0=$3, p1=$2, q0=60lbs, q1=100lbs, then how do you calculate its elasticity of demand? 

Definition
((10060)/60)/((23)/3)=((⅔)/(⅓)=(⅔)(3)=2 


Term
When Elasticity of Demand is Greater than One, then Demand is what? 

Definition


Term
When Elasticity of Demand is Less than One, then Demand is what? 

Definition


Term
When Elasticity of Demand is Equal to One, then Demand is what? 

Definition


Term
For Elasticity of Demand to be greater than one, then the numerator must be what? 

Definition
Greater than the denominator. 


Term
For Elasticity of Demand to be less than one, then the numerator must be what? 

Definition
Less than the denominator. 


Term
For Elasticity of Demand to be equal to one, then the numerator must be what? 

Definition
Equal to the denominator. 


Term
What does midpoint formula do? 

Definition
Takes the average elasticity between any two points along a demand function. 


Term
What is the midpoint formula? 

Definition
((Change in Quantity)/((q0+q+1)/2))/((Change in Price)/((p0+p1)/2)) 


Term
What does (Ed^m) represent? 

Definition
Elasticity of Demand found through midpoint formula. 


Term
How do you know if slope is constant? 

Definition
Price changes the same number of intervals (ex.price goes decreases by 2 as quantity demanded increases by 2) in either direction as quantity demanded, consistently throughout your stream of data. 


Term
Your revenue does not increase forever if you just continually do what? 

Definition


Term
What is the solution to a problem in this form? (a/b)/(a/c) 

Definition
1.)Multiply the numerator by the flipped denominator. (a/b)*(c/a)  2.)The a's cancel out and the two fractions merge. (c/b)  


Term

Definition
Quantity of Goods Sold Times Price of Goods Sold. 


Term
What does elastic demand represent? 

Definition
Percent Change in Quantity Demanded is significantly higher than Percent Change in Price. 


Term
What does unit elastic demand represent? 

Definition
The change in percent of price and the change in percent of quantity demanded is equal. 


Term
When demand is elastic, what happens to Total Revenue? 

Definition


Term
When demand is unit elastic, what happens to Total Revenue? 

Definition


Term
When demand is inelastic what happens to total revenue? 

Definition

