Chapter 3 - Market Behaviour: Elasticity, Tax And Price Controls Flashcards
1
Q
THE MEASURE OF HOW RESPONSIVE CONSUMERS’ DEMAND QUANTITY IS TO A CHANGE IN THE PRICE OF A PRODUCT
A
ELASTICITY OF DEMAND
2
Q
A PERIOD OF TIME IN WHICH ALL NECESSARY ADJUSTMENTS TO FACTORS OF PRODUCTION CAN BE MADE
A
LONG RUN
3
Q
A PERIOD OF TIME IN WHICH PRODUCERS OF A PRODUCT ARE UNABLE TO CHANGE THE QUANTITY PRODUCED IN RESPONSE TO A CHANGE IN ITS PRICE
A
MARKET PERIOD
4
Q
A PERIOD OF TIME IN WHICH AT LEAST ONE FACTOR OF PRODUCTION IS FIXED
A
SHORT RUN
5
Q
A MEASURE OF HOW SENSITIVE CONSUMER PURCHASES OF ONE PRODUCT ARE TO A CHANGE IN THE PRICE OF SOME OTHER PRODUCT
A
CROSS-PRICE ELASTICITY OF DEMAND
6
Q
A MEASURE OF HOW RESPONSIVE CONSUMERS’ DEMEND FOR A PRODUCT IS TO A CHANGE IN THEIR INCOME
A
INCOME ELASTICITY OF DEMAND
