Term
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Definition
| how much a percentage change in price leads to a percentage change in quantity demanded or quantity supplied |
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Term
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Definition
| the percentage change in quantity demanded divided by the percentage change in price |
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Term
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Definition
| the percentage change in quantity supplied divided by the percentage change in price |
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Definition
| the elasticity calculated rom the appropriate formula has an absolute value greater than 1 |
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Term
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Definition
| the extremely elastic situation where quantity change by an infinite amoun in response to any change in price |
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Term
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Definition
| the elasticity calculated from the appropriate formula has an absolute value less than 1 |
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Term
| what determines the magnitued of elasticities? |
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Definition
1)the availability of close substitutes
2)whether the good is a necessity or a luxury
3)time |
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Term
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Definition
| the highly inelazstic case in which a percentage change in price, no matter how large, results in zero change in the quantity |
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Definition
| a goo where the quantity demanded rises when income rises |
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Term
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Definition
| a good where the quantity demanded declines as income increases |
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Term
| cross-price elasticity of demand |
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Definition
| the percentage change in the quantity of good A that is demanded a as a result of a percentage change in good B |
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Term
| elasticity of labor supply |
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Definition
| the percentage change in hourse worked divided by the percentage change in hours worked divided by the percentage change in wages |
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Term
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Definition
| the percentage change in the quantity of savings divided by the percentage change in interest rates |
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Term
| price elasticity of demand |
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Definition
| same as elasticity of demand |
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Term
| deadweight loss is _______ when demand is more elastic |
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Definition
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Term
| when inputs are easily available; the price elasticity of supply will be? |
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Definition
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Term
| when supply is inelastic who bears the tax? |
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Definition
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Term
| when demand is inelastic who bears the burden of the tax? |
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Definition
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