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Warmoth Gibbs 5
ECO 2023 Module 5
Question | Answer |
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elasticity | a measure of the responsiveness of quantity demanded or quantity supplied to one of its determinants |
price elasticity | 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 |
total revenue | the amount paid by buyers and received by sellers of a good, computed as the price of a good times the quantity sold |
income elasticity of demand | 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 | 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 |
price elasticiy of supply | 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 |