ECON SET 2

Home > Preview

The flashcards below were created by user aminime on FreezingBlue Flashcards.


  1. EP= %Change in Quant/%Change in Price
    Absolute Value because of the Law of Demand

    • P(+)  -  Q(-)
    • P(-)   -  Q(+)
  2. P2-P2/P1
    Q2-Q1/Q1
  3. computes the percentage change by dividing the change by the midpoint of the initial and final levels
    • midpoint methods
    • (Q2-Q1)/[Q2+Q1/2]
    • -----------------------
    • (P2-P1)/[P2+P1/2]
  4. The flatter the curve the greater the
    Elasticity
  5. The steeper the curve the smaller
    the elasticity
  6. change in Q/Q
    ----------------
    change in P/P
    • DeltaQ            P
    • -------- X       ----  
    • DeltaP             Q
  7. a measure of the responsiveness of quantity demanded or quantity supplied to a change in one of its determinants price elasticity of demand total revenue income elasticity of demand cross-price elasticity of demand
    elasticity
  8. a measure of how much the quantity demanded of a good responds to a change in the price of that good, computed as the percentage change in quantity demanded divided by the percentage change in price
    price elasticity of demand
  9. the amount paid by buyers and received by sellers of a good, computed as the price of the good times the quantity sold
    total revenue
  10. a measure of how much the quantity demanded of a good responds to a change in consumers’ income, computed as the percentage change in quantity demanded divided by the percentage change in income cross-price elasticity of demand price elasticity of supply
    income elasticity of demand
  11. a measure of how much the quantity demanded of one good responds to a change in the price of another good, computed as the percentage change in quantity demanded of the first good divided by the percentage change in price of the second good
    cross-price elasticity of demand
  12. a measure of how much the quantity supplied of a good responds to a change in the price of that good, computed as the percentage change in quantity supplied divided by the percentage change in price
    price elasticity of supply
  13. a legal maximum on the price at which a good can be sold
    price ceiling
  14. a legal minimum on the price at which a good can be sold
    price floor
  15. the manner in which the burden of a tax is shared among participants in a market
    tax incidence
  16. the study of how the allocation of resources affects economic well-being
    welfare economics
  17. the maximum amount that a buyer will pay for a good
    willingness to pay
  18. the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it
    consumer surplus
  19. the value of everything a seller must give up to produce a good
    cost
  20. the amount a seller is paid for a good minus the seller’s cost of providing it efficiency equality
    producer surplus

Card Set Information

Author:
aminime
ID:
335232
Filename:
ECON SET 2
Updated:
2017-11-13 04:51:19
Tags:
economics
Folders:
economics
Description:
ECON SET 2
Show Answers:

Home > Flashcards > Print Preview