Quiz #3 Vocab

Question 0

Consumers are proportionately sensitive to price changes; %

Answer 0

Unit elastic demand

Question 1

Consumera are relatively less sensitive to price changes; %

Answer 1

Inelastic demand

Question 2

Consumers are relatively sensitive to price changes; %

Answer 2

Elastic demand

Question 3

Small increase in price will cause quantity demanded to fall to zero; flat demand curve; coefficient = infinity

Answer 3

Perfectly elastic

Question 4

Consumers will buy the same quantity of a good regardless of price; vertical demand curve; coefficient =0

Answer 4

Perfectly in elastic

Question 5

Price x quantity sold

Answer 5

Total revenue

Question 6

Revenue per unit of output; total revenue/quantity

Answer 6

Average revenue

Question 7

Revenue earned on one additional unit of output

Answer 7

Marginal revenue

Question 8

Costs that do not change with output levels; will be lost in the event of a shutdown

Answer 8

Fixed costs

Question 9

Costs that will change with output; firms can operate as long a P_>(greater than or equal to) AVC

Answer 9

Variable costs

Question 10

Fixed cost+variable costs

Answer 10

Total cost

Question 11

The cost of making one more unit of output;

Answer 11

Marginal cost

Question 12

Revenue minus cost

Answer 12

Profit

Question 13

Profit gained from selling one more unit of output

Answer 13

Marginal profit

Question 14

Profit earned on each unit of output

Answer 14

Average profit (profit per unit)

Question 15

Market for a good (usually a financial security) when it’s initially sold

Answer 15

Primary market

Question 16

Market for a good (usually a financial security) when it is brought and sold from other owners/investors and not from the original issuer

Answer 16

Secondary market