Equil & Elasticity Word Scramble
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| Term | Definition |
| Market Equilibrium | If no interference in the market occurs(by the government or other agency), price will eventually settle at a level where quantity demanded equals quantity supplied. This position where there is no tendency for prices to change is called the Mkt Equil. |
| Elasticity | is a measure of responsiveness(sensitivity) of the quantity demanded of a good to a change in some variable. |
| Price Elasticity of Demand PED | measures the %/proportionate change in the quantity demanded for a good caused by the %/proportionate change in the price of the good itself. |
| Relatively Elastic | when the %/Proportionate change in the Qd of a good is GREATER than the %/proprotionate change in the price of the good itself. |
| Perfectly Elastic | when any increase in the price of that good results in its quantity falling to zero. |
| Unitary Elastic | when the %/proportionate change in the Qd of a good is equal to the %/proportionate change in the price of that good. |
| Relatively Inelastic | if the %/proportionate change in Qd of a good is LESS than the %/proportionate change in the price of that good. |
| Perfectly Inelastic | if the %/proportionate change in the price of a good causes no change in the Qd of that good. |
| Cross Elasticity of Demand CED | measures the %/proportionate change in the Qd for one good caused by the %/proportionate change in the price of another good. |
| Income Elasticity of Demand YED | measures the %/proportionate change in the Qd for a good caused by the %/proportionate change in the income of consumers. |
| Price Elasticity of Supply PES | measures the relationship between the %/proportionate change in Qs and a %/proportionate change in price. |
| Elastic Supply | when the proportionate change in Qs is GREATER than the proportionate change in price. |
| Inelastic Supply | when a change in the price of the good causes LESS than a proportionate change in the Qs of a good. |
| Perfectly Inelastic of Supply (Zero Elasticity of supply) | an increase in the selling price of the good does not result in any increase in the QS. the supply of fish on market day is fixed. |
Created by:
cmcgrath
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