Exam (elaborations)
ECON 1B03 Test 2 Review
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ECON 1B03 Test 2 Review
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1-80 of 80change in P leads to a proportionately equal change in Qd
Unit elastic
what kind of demand do luxuries have?
, elastic demand
measure of how much the quantity demanded of a good responds to a change in that
price of that good
Price elasticity of demand
inputs that can vary in quantity
variable inputs
measure of how much the quantity supplied of a good responds to the change in
price of that good
price elasticity of supply
in order to decide whether to provide a public good or not, the total benefits of all
those who use the good must be compared to the costs of providing and maintaining
, the public good
cost benefit analysis
long run average costs fall as quantity increases
increasing returns to scale
legal minimum price that can be charged in the market
price floor
what kind of demands do goods with not-so-close substitutes have?
inelastic demand
neither excludable nor rival
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