question
Elasticity
answer
A measure of how much one economic variable responds to changes in another economic variable.
question
Price Elasticity of Demand (PED)
answer
the percentage change in quantity demanded relative to a percentage change in price
question
PED formula
answer
% change in Qd / % change in P
question
Elastic
answer
when a given change in price causes a relatively larger change in quantity demanded
question
Inelastic
answer
a given change in price causes a relatively smaller change in the quantity demanded
question
Unitary Elastic
answer
demand whose elasticity is exactly equal to 1
question
Calculating Percentage Changes
answer
end value-start value/start value x 100%
question
when close substitutes are available, price elasticity is
answer
higher
question
Price elasticity is higher for ____________ defined goods than for ______________ defined ones.
answer
narrowly, defined
question
Price elasticity is higher for _____________ than for ______________.
answer
luxuries, necessities
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
