Term
| price elasticity of demand |
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Definition
| the ration of the percent change in the quantity demanded of a product to a percentage change in its price |
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Term
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Definition
| a condition in which the percentage change in the quantity demanded is greater than the percentage change in price |
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Term
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Definition
| the total number of dollars a firm earns from the sale of a good or service which is equal to its price multiplied by the quantity demanded |
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Term
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Definition
| a condition in which the percentage change in quantity demanded is less than the percentage change in price |
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Term
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Definition
| not elastic or inelastic because the percentage change in quantity demanded is equal to the percentage change in price |
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Term
| perfectly elastic demand curve |
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Definition
| perfectly horizontal graph, the small percentage change in price brings an infinite percentage change in quantity demanded |
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Term
| perfectly inelastic demand |
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Definition
| the condition in which the quantity demanded does not change as the price changes, vertical line |
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Term
| income elasticity of demand |
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Definition
| the ratio of percentage change in the quantity demanded of a good or service to a given percentage change in income, for a normal good this is positive |
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Term
| cross-elasticity of demand |
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Definition
| the ration of the percentage change in the quantity demanded of a good or service to a given percentage change in the price of another good or service |
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Term
| price elasticity of supply |
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Definition
| the ration of the percentage change in the quantity supplied of a product to the percentage change in its price |
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Term
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Definition
| the share of a tax ultimately paid by consumers and sellers |
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