Show
Home Subjects Expert solutions Create Log in Sign up Upgrade to remove ads Only ₩37,125/year
Review terms and definitions
Focus your studying with a path
Take a practice test
Get faster at matching terms Terms in this set (25)Price elasticity of demand shows how Responsive the quantity demanded is to a change in price. Supply is very elastic when The quantity supplied has a large increase in response to an increase in price. Supply is very inelastic when The quantity supplied changes little when the price increases Oil and alternative sources of energy such as wind and solar are Substitute goods For product X, the price elasticity of demand has an absolute value of 3.5. This means that quantity demanded will increase by 3.5 percent for each 1 percent decrease in price, ceteris paribus. When demand is elastic, the absolute number for price elasticity will be Greater than 1 When demand is inelastic The percentage change in price is greater than the percentage change in quantity demanded. When the percentage change in quantity demanded is less than the percentage change in price, ceteris paribus Demand is inelastic A demand curve that is completely elastic is Horizontal The demand will be _______________ if the consumer has _________ substitute goods to choose from Elastic; more The basic formula for price elasticity of demand is The percentage change in quantity demanded divided by the percentage change in price Demand is more price-elastic In the long run
If the price elasticity of demand is equal to 2, the good has ___ demand. Elastic A price change will have no effect on total revenue if demand is Unitary elastic If the demand for cigarettes is inelastic Total revenue will rise if the price of cigarettes rise When demand is price-inelastic, ceteris paribus, an increase in Price leads to greater total revenue To find the average percentage change in quantity demanded, The change in quantity demanded is divided by the average quantity On a demand curve, demand is more elastic At higher prices Smart phones and apps are complementary goods. The cross price elasticity of demand between smart phones and apps is expected to be Negative If two goods are complementary goods, then The cross-price elasticity sign will be negative Income elasticity measures the Responsiveness of quantity demanded to a percentage change in income A good is normal if the sign on the income elasticity formula is Positive The demand for normal goods Rises when income rises If a good is normal, its income elasticity of demand is positive If a good is inferior, its income elasticity of demand is negative Recommended textbook solutions Principles of Microeconomics7th EditionN. Gregory Mankiw 830 solutions Principles of Microeconomics8th EditionN. Gregory Mankiw 796 solutions
Essentials of Economics2nd EditionPaul Krugman 116 solutions Macroeconomics7th EditionN. Gregory Mankiw 213 solutions Sets with similar termsUnit1- Elastisity Defenitions18 terms bensab62 Microeconomics Chapter 619 terms jsu1 Micro ch. 570 terms stephy658 Chapter 5 part one13 terms kararaines Other sets by this creatorDigital Marketing Quizzes3 terms walkerfranklin12 Role Play #17 terms walkerfranklin12 MGNT-323 exam 13 terms walkerfranklin12 MKTG-360 Exam 2107 terms walkerfranklin12 Verified questions
ECONOMICS What is producer surplus? How is it illustrated on a demand and supply diagram? Verified answer
ECONOMICS Answer the questions: (a) Is this a one- or two-tailed test? (b) What is the decision rule? (c) What is the value of the test statistic? (d) What is your decision regarding $$ H_0? $$ A sample of 36 observations is selected from a normal population. The sample mean is 21, and the population standard deviation is 5. Conduct the following test of hypothesis using the .05 significance level. $$ H_0:μ≤20; H_1:μ>20 $$ Verified answer
ECONOMICS Provide at least three real-world examples to illustrate the circular flow model of a market economy. Verified answer
ECONOMICS Structural unemployment is sometimes said to result from a mismatch between the job skills that employers want and the job skills that workers have. To explore this idea, consider an economy with two industries: auto manufacturing and aircraft manufacturing. a. If workers in these two industries require similar amounts of training, and if workers at the beginning of their careers could choose which industry to train for, what would you expect to happen to the wages in these two industries? How long would this process take? Explain. b. Suppose that one day the economy opens itself to international trade and, as a result, starts importing autos and exporting aircraft. What would happen to demand for labor in these two industries? c. Suppose that workers in one industry cannot be quickly retrained for the other. How would these shifts in demand affect equilibrium wages both in the short run and in the long run? d. If for some reason wages fail to adjust to the new equilibrium levels, what would occur? Verified answer Other Quizlet setsFinal exam 1237 terms aemcclure01 Clocks, Rhythms & Diseases Quiz 243 terms DeltaArchAngel Vocab 13 sentences15 terms jordanhoward165 Sociology Exam 237 terms Leah_Hollins6 Related questionsQUESTION Critics of markets that are characterized by firms that sell brand name products argue that brand names encourage consumers to pay more for branded products that 15 answers
QUESTION what are the gov's two general roles? 8 answers QUESTION What terms best refers to a fair distribution of economic benefits? 2 answers QUESTION what should you do if the marginal cost of a unit if output exceeds its marginal revenue? 2 answers When the percentage change in the quantity demanded is less than the percentage change in price then demand is?If the percentage change in quantity demanded is less than the percentage change in price, demand is said to be price inelastic, or not very responsive to price changes.
Is the percentage change in the quantity supplied is less than the percentage change in price?Supply is price elastic when the percentage change in quantity supplied is greater than the percentage change in price, and supply is price inelastic when the percentage change in quantity supplied is less than the percentage change in price.
When the percentage change in quantity demanded is less than the percentage change in price of a given product being purchased we say the demand for such a product is?Example of Price Elasticity of Demand
Finally, if the quantity purchased changes less than the price (say, -5% demanded for a +10% change in price), then the product is deemed inelastic.
When the percentage change in the quantity demanded equals the percentage change in price?When percentage change in quantity demanded is equal to the percentage change in price, the elasticity of demand is unitary elastic.
|
When the percentage change in quantity demanded is less than the percentage change in price ceteris paribus?
zusammenhängende Posts
Urheberrechte © © 2024 defrojeostern Inc.
