Chapter 4- Section 3 Flashcards Preview

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Flashcards in Chapter 4- Section 3 Deck (7)
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A measure of responsiveness set tells us how a dependent variable such as quantity responds to a change in an independent variable such as price

Elasticity

1

The extent to which a change in price causes a change in the quantity demanded

Demand elasticity

2

When I given change in price causes a relatively larger change in quantity demanded

Elastic

3

A given change in price causes a relatively small change in the quantity demanded

Inelastic

4

A given change in price causes a proportional change in quantity demanded

Unit elastic

5

Multiplying the price of a product by the quantity demanded for any point along the demand curve

Total expenditures

6

What makes the demand for a specific good elastic or inelastic?

Can the purchase be delayed, or adequate substitutes available, does a purchase using large portion of income