Chapter 6 - Elasticity Flashcards
1
Q
Law of Demand
A
The quantity of a good demanded in a given time period increases as its price falls, ceteris paribus.
2
Q
Demand Curve
A
A curve describing the quantities of a good a consumer is willing and able to buy at alternative prices in a given period, ceteris paribus.
3
Q
Price Elasticity of Demand
A
The percentage change in quantity demanded divided by the percentage change in price.
