Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Micro Econ > Elasticity > Flashcards

Elasticity Flashcards

1
Q

price elasticity of demand

A

% change in the qty demanded/% change in the price

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

quantity demanded responds a lot to change in price

A

elastic

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

quantity demanded responds a little to change in price

A

inelastic

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

price elasticity of demand determinants

A

substitutability, proportion of income, time horizon, definition of market, luxury vs necessity, habit forming

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

more substitutes

A

elastic

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

less substitutes

A

inelastic

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

big percent of income

A

elastic

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

small percent of income

A

inelastic

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

more time

A

elastic

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

little time

A

inelastic

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

narrowly defined market

A

elastic

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

broadly defined market

A

inelastic

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

luxuries

A

elastic

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

necessities

A

inelastic

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

habit formed goods

A

inelastic

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

what do you need to do a total revenue test

A

2 prices and 2 quantities of a product

17
Q

income elasticity of demand (normal/ inferior)

A

% change in qty demanded/ % change in income

18
Q

cross price elasticity of demand (substitute/ complement)

A

% change in quantity demanded of good 1/ % change in price of good 2

19
Q

if price and TR go in the same direction it is

A

inelastic

20
Q

if price and TR go in opposite directions it is

A

elastiic

21
Q

if price moves but TR is unchanged it is

A

unit elastic

22
Q

if a market has perfect inelasticity, the value is

A

0

23
Q

if a market is relatively inelastic, the value is

A

0.01-0.99

24
Q

if a market is unit elastic, the value is

A

1

25
Q

if a market is relatively elastic, the value is

A

> 1

26
Q

if a market is perfectly elastic, the value is

A

infinity

27
Q

perfectly inelastic graphs are

A

vertical

28
Q

perfectly elastic graphs are

A

horizontal

29
Q

unit elastic graphs are

A

at a 45 degree angle

30
Q

governments like to tax

A

inelastic goods

31
Q

the top of the curve (high price, low quantity) is more

A

elastic

32
Q

the bottom of the curve (low price, high quantity) is more

A

inelastic

33
Q

if the result of the income elasticity of demand formula is positive it’s a(n)

A

normal good

34
Q

if the result of the income elasticity of supply formula is negative it’s a(n)

A

inferior good

35
Q

if the result of the cross price elasticity of demand formula is positive it’s a(n)

A

substitute

36
Q

if the result of the cross price elasticity of demand formula is negative it’s a(n)

A

complement

Micro Econ (3 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions