Chapter 4: Elasticity

Question 1

measure of the responsiveness of buyers and sellers to changes in price or income

Answer 1

elasticity

Question 2

measures the responsiveness of quantity demanded in a change to price

Answer 2

price elasticity of demand

Question 3

there is no time for consumers to adjust their behavior

Answer 3

immediate run

Question 4

consumers can partially adjust their behaviors

Answer 4

short run

Question 5

consumers have time to fully adjust to market conditions

Answer 5

long run

Question 6

the amount that a firm receives from the sale of goods and services; calculated by multiplying the price of the good and by the quantity of the good that is sold

Answer 6

total revenue

Question 7

measures how a change in income affects spending

Answer 7

income elasticity of demand

Question 8

measures the responsiveness of the quantity demanded of one good to a change in the price of a related good

Answer 8

cross-price elasticity of demand

Question 9

sometimes called elasticity of supply or supply elasticity; measure of the responsiveness of a quantity supplied to a change in price

Answer 9

price elasticity of supply