Ch. 5

अब Quizwiz के साथ अपने होमवर्क और परीक्षाओं को एस करें!

The price elasticity of supply measures how responsive

sellers are to a change in price

Elasticity is

a measure of how much buyers and sellers respond to changes in market conditions.

If demand is price inelastic, then

buyers do not respond much to a change in price

Demand is said to be price elastic if

buyers respond substantially to changes in the price of the good.

The price elasticity of demand measures

buyers' responsiveness to a change in the price of a good

If the quantity demanded of a certain good responds only slightly to a change in the price of the good, then the

demand for the good is said to be inelastic.

Demand is said to be unit elastic if quantity demanded

does not respond to a change in price

When quantity demanded responds strongly to changes in price, demand is said to be

elastic

Demand is said to have unit elasticity if the price elasticity of demand is

equal to 1

Demand is elastic if the price elasticity of demand is

greater than 1

In general, elasticity is a measure of

how much buyers and sellers respond to changes in market conditions

Demand is inelastic if the price elasticity of demand is

less than 1

The price elasticity of demand measures the

magnitude of the response in quantity demanded to a change in price

Economists compute the price elasticity of demand as the

percentage change in quantity demanded divided by the percentage change in price.

Which of the following expressions represents a cross-price elasticity of demand?

percentage change in quantity demanded of bread divided by percentage change in price of butter

The price elasticity of demand measures how much

quantity demanded responds to a change in price

Demand is said to be inelastic if

the quantity demanded changes only slightly when the price of the good changes.

Cross-price elasticity of demand measures how

the quantity demanded of one good changes in response to a change in the price of another good.

The price elasticity of supply measures how much

the quantity supplied responds to changes in the price of the good


संबंधित स्टडी सेट्स

Colorado Contracts & Regulations Online Midterm & Final

View Set

Data Analytics for Accounting - Midterm Set

View Set

Expresiones de condición y propósito

View Set