elasticity chap 5 Flashcards
1
Q
Tax Incidence
A
how the burden of tax is divided between consumers and producers
2
Q
Cross-Price Elasticity of Demand
A
%change in Qd of good A /
%change in price of good B
3
Q
Wage Elasticity of Labor Supply
A
%change quantity labor supplied /
%change in wage
4
Q
Elasticity of Savings
A
%change in quantity of financial savings /
%change in interest rate
5
Q
income elasticity of demand
A
%change in quantity demanded /
%change in income
6
Q
Infinite/Perfect Elasticity
A
quantity changes by and infinite amount in response to any price change, horizontal line
7
Q
Zero Elasticity/Perfect Inelasticity
A
change in prices makes no change in quantity
8
Q
Price Elasticity
A
%change in quantity /
%change in price
9
Q
Elastic
A
> 1
10
Q
Unitary
A
=1
11
Q
Inelastic
A
<1
12
Q
A
