Chapter 5 Key Concepts Flashcards
Elasticity
1
Q
Price Elasticity Less than 1
A
Inesastic
2
Q
Price elasticity greater than 1
A
Elastic
3
Q
Price elasticity equal to 1
A
Unitary Elastic
4
Q
When Price of Elasticity of Demand = 0
A
Perfectly Inelastic
5
Q
When price elasticity approaches infinity
A
Perfectly elastic
6
Q
Number of substitutes, share of budget, and time period
A
Determinants of Elasticity
7
Q
Measure of how the percentage change in the price of good X changes the percentage change in the quantity of good Y
A
Cross Price Elasticity
8
Q
How the percentage change in income changes the percentage quantity demanded of some good
A
Income Elasticity
