Term
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Definition
Change in Quantity Demanded
Change in Price |
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Term
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Definition
Change in Quantity
Sum of Quantities diveded by 2
Change in Price
Sum of Price divded by 2 |
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Term
Elasticity of Supply
Formula |
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Definition
Change in Quantity Supplied
Change in Price |
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Term
Elasticity of Supply
Determinates |
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Definition
Es>1 Elastic
Es<1 Inelastic
Es= Unit Elastic |
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Term
Cross Elasticity of Demand
Formula |
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Definition
Change in Quantity X
Change in Price Y |
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Term
Cross Elasticity of Demand
Signs |
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Definition
+ Substitutes
- Complementary
0 Independent |
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Term
|
Definition
| Extra utility a consumer obtains from the consumption of 1 additional unit |
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Term
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Definition
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Term
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Definition
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Term
| Determinants of Price Elasticity of Demand |
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Definition
Substitutabilty
Proportion of Income
Luxuries (elastic)
Necessitites (inelastic)
Time |
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Term
|
Definition
| Over Implicit and Explicit costs |
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Term
|
Definition
| Homogenious, sell all units at that price |
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Term
|
Definition
| 1 firm controls all of the output |
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Term
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Definition
| 20-40 firms of the same product with different characteristics |
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Term
|
Definition
| Variable plant capacity size |
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Term
|
Definition
| Fixed plant capacity size |
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Term
| Accounting Short Run and Long Run |
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Definition
| Based upon annual chronology |
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Term
|
Definition
| Total amount of satisfaction |
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Term
|
Definition
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Term
|
Definition
Change in TP
Change in Labor |
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Term
|
Definition
Total Product
Units of Labor |
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Term
|
Definition
Total Fixed Costs
Quantity |
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Term
|
Definition
| Total Revenue - Total Cost |
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Term
|
Definition
| Price- Average Total Cost |
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Term
|
Definition
Total Variable Cost
Quantity |
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Term
|
Definition
| Average Fixed Cost + Average Variable Cost |
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Term
|
Definition
| Total Fixed Cost + Total Variable Cost |
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Term
|
Definition
Change in Total Cost
Change in Quantity |
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Term
|
Definition
| Total Cost - Total Variable Cost |
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Term
|
Definition
| Marginal Revenue > Marginal Cost |
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Term
|
Definition
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Term
|
Definition
| Price > Average Total Cost |
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Term
|
Definition
| Average Variable Cost < Price < Average Total Cost |
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Term
|
Definition
| Price < Average Variable Cost |
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Term
Income Elasticity of Demand
Formula |
|
Definition
Change in Quantity Demanded
Change in Income |
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|
Term
Income Elasticity of Demand
Signs |
|
Definition
+ Normal/Superior Goods
- Inferior Goods |
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