Elastic problems
When consumers have more time to adjust, demand becomes relatively more __.
Elastic
A price elasticity of supply of .50 means that if the price decreases by 1%, the quantity supplied will __ by __%
fall, .50
A price elasticity of demand of -.75 means that if the price decreases by 10%, the quantity demanded will __ by __%.
Increase, 7.50
A price elasticity of demand that is calculated as -.61 would be considered __.
Inelastic
The time period in which all inputs of production are variable and no input is fixed is the:
Long run
Simple formula for the price elasticity of supply is:
Make the number easier to work with when determining whether the demand is elastic, inelastic, or unit-elastic
Economists find elasticity useful because it:
Of the law of supply
__ elasticity of demand is a measure of how responsive the quantity demanded is to a change in price.
Price
The time periods associated with a set of supply curves include:
The short run The immediate period The long run