Brainscape's Knowledge GenomeTM

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


See full index

BE 113, Managerial Economics > Elasticity and Consumer Theory > Flashcards

Elasticity and Consumer Theory Flashcards

1
Q

it is the responsiveness of demand due to the change of its own price

A

Own Price elasticity of Demand

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

a Latin term means that all things equal

A

Ceteris paribus

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

basic necessity is relatively price inelastic compared with a luxury commodity

A

True

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

more substitutes, more elastic

A

True

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

more uses, more elastic

A

True

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

the degree of responsiveness between the degree of changes in price and changes in quantity

A

Supply/Demand Elasticity

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

if the absolute value coefficient is greater than 1, then the demand is

A

Elastic

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

if the absolute value coeffecient of demand is less than 1, then the demand is

A

Inelastic

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

degree of responsiveness between 2 variables

A

Elasticity

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

perfectly inelastic demand

A

/E/ is equal to 0

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

sub x

A

commodity x

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

inelastic or relatively inelastic

A

/E/ is less than 1

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

unit elastic

A

/E/ is equal to 1

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

elastic or relatively elastic demands

A

/E/ is greater than 1

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

perfectly elastic demand

A

/e/ is equal to infinity

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

used when the available figures on price and quantity are DISCRETE, and it is possible to isolate and calculate the incremental changes

A

Arc Elasticity Method

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

this elasticity formula is used in order to compute large prices in real estate and properties

A

Arc Elasticity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

measures the responsiveness of the demand for a commodity due to the changes of the prices of OTHER goods and services

A

Cross Elasticity of Demand

19
Q

the coefficient of cross elasticity of demand

A

Pxy or rhoxy

20
Q

rho is less than zero

A

Complementary Goods

21
Q

rho is greater than zero

A

Substitute Goods

22
Q

rho is equal to zero

A

Independent Goods

23
Q

this elasticity is used in order to compute whether goods are normal, luxury, or inferior goods

A

Income Elasticity of Demand

24
Q

coefficient of income elasticity

A

Theta

25
Q

the relative change in quantity demand due to a percentage change in INCOME of the consumer

A

Income Elasticity of Demand

26
Q

theta is equal to one

A

Normal Good

27
Q

theta is greater than 1

A

Luxury Goods

28
Q

theta is less than 1

A

Inferior Good

29
Q

theta is equal to zero (an increase in income is not associated with a change in the demand for a good)

A

Sticky Goods

30
Q

food, water, warmth, rest

A

Physiological Needs

31
Q

security, and safety

A

Safety Needs

32
Q

intimate relationship, and friends

A

Belongingness and Love needs

33
Q

prestige and the feeling of accomplishment

A

Esteem Needs

34
Q

achieving one’s full potential, including creative activities

A

Self-Actualization

35
Q

this elasticity formula is used in order to compare whether goods are substitutes or complements

A

Cross Price Elasticity

36
Q

the satisfaction of an individual in his consumption

A

Utility

37
Q

an approach wherein utility can be quantified or expressed in terms of numbers (Monetary Value)

A

Cardinal Utility

38
Q

rational people think in a margin

A

Principle 3

39
Q

as the price of commodity decreases, the consumption for that commodity increases

A

True

40
Q

an approach wherein utility can be determined from the preference of two commodities or goods

A

Ordinal Utility

41
Q

it is a concept that whenever a consumer consumes the same good, total utility increases but the marginal utility decreases

A

Principles of Diminishing Marginal Utility

42
Q

a locus of points that shows a different combination of consumption/preferences that will give consumer the same LEVEL OF SATISFACTION OR UTILITY

A

Indifference Curve

43
Q

indifference curve does not intersect and violates the concept of transitivity and consistency

A

True

BE 113, Managerial Economics (9 decks)

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