Elasticity Flashcards
0
Q
PED
A
% change in price
1
Q
Elasticity
A
% change in the determinant
2
Q
PED>1 Elastic
A
Price increase = Total revenue decreases
Price decrease = Total revenue increases
3
Q
Total Revenue
A
The total amount of money that the firm has coming in when it sells it’s products
4
Q
PED < 1 Inelastic
A
Prices decrease = Total revenue decreases
Prices increase = Total revenue increases
5
Q
PED = 1 Unity
A
Price increase or decreases= Total revenue unchanged
6
Q
YED
A
% change in Y
7
Q
XED - Cross Elasticity of Demand
A
XED =
% change in price of good A
8
Q
PES
A
% change in P
