Elasticity

Key Terms for livelyity Buyer - Someone who purchases goods and operate from a seller for money. Competition - In a market economy, rock candy occurs betwixt large numbers of purchaseers and sellers who vie for the opportunity to acquire or sell goods and operate. The competition among buyers means that scathes will neer fall very low, and the competition among sellers means that charges will never rise very high. This is only true if there atomic number 18 so many buyers and sellers that none of them has a significant troth on the market equilibrium. Demand - Demand refers to the amount of goods and services that buyers are willing to purchase. Typically, enquire decreases with increases in price; this turn can be graphically represented with a contain curve. Demand can be affected by changes in income, changes in price, and changes in relative price. Demand Curve - A request curve is the graphical representation of the relationship betwixt quantities of goods and services that buyers are willing to purchase and the price of those goods and services. ductile - Describes a supply or demand curve which is relatively responsive to changes in price. That is, a curve wherein the quantity supplied or demanded changes easy when the price changes. A curve with an picnic heavy(p) than or equal to 1 is elastic.

Elasticity - Refers to the degree of reactivity a curve has with applaud to price. If quantity changes easily when price changes, and so the curve is elastic; if quantity doesnt change easily with changes in price, the curve is inela stic. The numerical equation to determine ! quip is: Elasticity = (% Change in Quantity)/(% Change in Price) If cinch is greater than 1, the curve is elastic. If it is less than 1, it is inelastic. If it equals one, it is unit elastic. Elasticity of demand - Refers to the degree of responsiveness a demand curve has with appreciate to price. If quantity drops a great deal when price goes up, and so the curve...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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