Chapter 18 Flashcards

1
Q

price elasticity

A

percentage change in quantity divided by the percentage change in price

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2
Q

inelastic goods

A

demand is not changed by price

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3
Q

elastic goods

A

the demand goes down with the change in price

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4
Q

markup

A

a percentage applied to base cost, it includes desired profit and any costs not included in the base cost

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