Availability of Substitutes and Share of Consumer's Budget
A Matter of Time and Some Elasticity Estimates
100
percentage change in quantity demand over percentage change in price
What is the equation for the elasticity of demand?
100
You just won free points!!
Free Points
100
the more responsive the change in quantity demanded is to a given change in price.
The longer period of adjustment...
200
measures how responsive quantity demanded is to a price change
Explain in your own words the elasticity of demand
200
Be polite
Be prepared
Be professional
Be positive
Be productive
Be prompt
Random: What are Ms. Martin's six classroom rules?
200
Long Run
What is called when consumers can fully adjust to a price change?
300
If the price is lower the demand for something is going to be higher. If the product has a higher price the demand for that product is going to be lower.
What does it mean when it says the elasticity is responsive?
300
The more broadly a good is defined the fewer substitutes there are and the less elastic the demand is.
Why does the number and similarity of substitutes depend of the definition of a good?
300
the consumer's ability to substitute higher priced product for lower priced substitutes.
The longer the adjustment period, the greater...
400
Price multiplied by the quantity demanded at that price.
What is Total Revenue?
400
Willingness & Ability to purchase a good at an alternate price.
What does a demand curve reflect?
400
the Short Run
What is it called when consumers have little time to adjust?
500
Elastic
Unit-Elastic
Inelastic
What are the three types of elasticity?
500
Availability of Substitutes
Consumer's Budget Spent on the Good
Matter of Time
What are the characteristics that influence the elasticity of demand?