ch 5 Flashcards
1
Q
what does elasticity measure
A
responsiveness of quantity to to other factors
2
Q
ped=
A
%change in price of quantity demanded over %change in price
3
Q
cped =
A
%change in q demanded over %change on p of another good
4
Q
ied=
A
%change in q demanded over %change in income
5
Q
pes=
A
%change in q supplied over %change in p
6
Q
demand is more elastic when
A
substitutes exist
7
Q
knowing whether price elastisicity is positive or negative can help maximize
A
revenue
8
Q
cross price elasticity is positive for
A
substitutes
9
Q
A
