Midterm 2 (Elasiticy) Flashcards
1
Q
Midpoint formula
A
go over midpoint formula!!!!!!!!
2
Q
total revenue is ___________ at unit elasticity
A
maximized
3
Q
total revenue =
A
price x quantity
4
Q
if there are many substitutes for a good, is it more or less elastic?
A
more
5
Q
consumers being responsive to price change makes things ______ elastic
A
more
6
Q
necessity
A
inelastic
7
Q
luxury
A
elastic
8
Q
the more time consumers have to adjust to a price, the _____ elastic it becomes
A
more
9
Q
cross-price elasticity for complements is positive or negative?
A
Negative
10
Q
is income elasticity of demand positive for normal goods or inferior goods?
A
normal
11
Q
A
