Term
| Elasticity of Demand does what along a linear demand curve? |
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Definition
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Term
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Definition
| Ratio of percentage changes of quantity demanded and quantity supplied. |
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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 formula for Elasticity? |
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Definition
| ((Percentage Change of Quantity Demanded)/(Quantity Demanded))/((Percentage Change in Price)/(Price)) |
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Term
| When prices are high, how large or small is the percentage change of quantity demanded and price? |
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Definition
| Percentage change in quantity demanded is large and percentage change in price is small. |
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Term
| When prices are low, how large or small is the percentage change of quantity demanded and price? |
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Definition
| Percentage change in quantity demanded is small and percentage change in price is large. |
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Term
| Why does Elasticity vary along a linear demand curve? |
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Definition
| Because it is based on percentage changes. |
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Term
| When prices are high Elasticity is what? |
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Definition
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Term
| When prices are low Elasticity is what? |
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Definition
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Term
| Can Elasticity be determined algebraically? |
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Definition
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Term
| What is another way to represent the formula of Elasticity? |
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Definition
| ((Percentage in Quantity Demanded)/(Percentage Change in Price))*((Price)/(Quantity Demanded)) |
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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
| What is the algebraic formula of Elasticity really useful for? |
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Definition
| When examining the elasticity of a point on a demand curve. |
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Term
| What does a Demand Function Look Like? |
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Definition
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Term
| What does "Q" Mean in a Demand Function? |
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Definition
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Term
| What does "A" Mean in a Demand Function? |
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Definition
| The amount people would take if it was free. |
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Term
| What does "P" Mean in a Demand Function? |
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Definition
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Term
| What does "B" Mean in a Demand Function? |
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Definition
| Any number being multiplied by the price. |
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Term
| If you know the slope and you have the Demand Function, can you calculate Elasticity? |
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Definition
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Term
| Who is the tutor for ECN 143? |
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Definition
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Term
| What do you need for the test? |
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Definition
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Term
| What is Substitutability? |
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Definition
| The availability of substitute goods. |
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Term
| What is the Effect of Substitutability on Elasticity? |
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Definition
| Where there are substitutes the more substitutes there are the greater the elasticity. |
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Term
| The more general a good the less what does it have? |
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Definition
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Term
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Definition
| Goods with very many substitutes |
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Term
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Definition
| Goods with very few substitutes |
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Term
| What is Budget Share in relation to Elasticity? |
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Definition
| The greater the share of a budget a good takes up, the greater the Elasticity of said good. |
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Term
| What does Elasticity measure? |
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Definition
| The magnitude of a consumer's reaction to a price change. |
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Term
| The more opportunity (time) a consumer has to respond to a price change (find substitutes for the good) has what effect on elasticity? |
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Definition
| Elasticity Becomes Higher |
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Term
| If elasticity is smaller, then you are are more likely to get what? |
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Definition
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Term
| If elasticity is larger, then you are are more likely to get what? |
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Definition
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