Term
Elasticity of Demand does what along a linear demand curve? 

Definition


Term

Definition
Ratio of percentage changes of quantity demanded and quantity supplied. 


Term

Definition
Ratio of absolute changes of quantity demanded and quantity supplied. 


Term
What is the formula for Elasticity? 

Definition
((Percentage Change of Quantity Demanded)/(Quantity Demanded))/((Percentage Change in Price)/(Price)) 


Term
When prices are high, how large or small is the percentage change of quantity demanded and price? 

Definition
Percentage change in quantity demanded is large and percentage change in price is small. 


Term
When prices are low, how large or small is the percentage change of quantity demanded and price? 

Definition
Percentage change in quantity demanded is small and percentage change in price is large. 


Term
Why does Elasticity vary along a linear demand curve? 

Definition
Because it is based on percentage changes. 


Term
When prices are high Elasticity is what? 

Definition


Term
When prices are low Elasticity is what? 

Definition


Term
Can Elasticity be determined algebraically? 

Definition


Term
What is another way to represent the formula of Elasticity? 

Definition
((Percentage in Quantity Demanded)/(Percentage Change in Price))*((Price)/(Quantity Demanded)) 


Term
What is the algebraic formula for Elasticity? 

Definition
(Slope)*(Price/Quantity Demanded) 


Term
What is the algebraic formula of Elasticity really useful for? 

Definition
When examining the elasticity of a point on a demand curve. 


Term
What does a Demand Function Look Like? 

Definition


Term
What does "Q" Mean in a Demand Function? 

Definition


Term
What does "A" Mean in a Demand Function? 

Definition
The amount people would take if it was free. 


Term
What does "P" Mean in a Demand Function? 

Definition


Term
What does "B" Mean in a Demand Function? 

Definition
Any number being multiplied by the price. 


Term
If you know the slope and you have the Demand Function, can you calculate Elasticity? 

Definition


Term
Who is the tutor for ECN 143? 

Definition


Term
What do you need for the test? 

Definition


Term
What is Substitutability? 

Definition
The availability of substitute goods. 


Term
What is the Effect of Substitutability on Elasticity? 

Definition
Where there are substitutes the more substitutes there are the greater the elasticity. 


Term
The more general a good the less what does it have? 

Definition


Term

Definition
Goods with very many substitutes 


Term

Definition
Goods with very few substitutes 


Term
What is Budget Share in relation to Elasticity? 

Definition
The greater the share of a budget a good takes up, the greater the Elasticity of said good. 


Term
What does Elasticity measure? 

Definition
The magnitude of a consumer's reaction to a price change. 


Term
The more opportunity (time) a consumer has to respond to a price change (find substitutes for the good) has what effect on elasticity? 

Definition
Elasticity Becomes Higher 


Term
If elasticity is smaller, then you are are more likely to get what? 

Definition


Term
If elasticity is larger, then you are are more likely to get what? 

Definition

