Match each of the terms on the left with its definition on the right. Click on the term first and then click on the matching definition. As you match them correctly they will move to the bottom of the activity.
Elastic demand Income-inelastic demand Perfectly elastic supply Price elasticity of supply Perfectly inelastic supply Inelastic demand Price elasticity of demand Perfectly elastic demand Cross-price elasticity of demand Unit-elastic demand Total revenue Income-elastic demand Income elasticity of demand Midpoint method Perfectly inelastic demand | the case in which the price elasticity of supply is zero, so that changes in the price of the good have no effect on the quantity supplied; the perfectly inelastic supply curve is a vertical line. the case in which the income elasticity of demand for a good is greater than 1. the ratio of the percentage change in the quantity demanded to the percentage change in the price as we move along the demand curve (using the absolute value). the case in which even a tiny increase or reduction in the price will lead to very large changes in the quantity supplied, so that the price elasticity of supply is infinite; the perfectly elastic supply curve is a horizontal line. the case in which the price elasticity of demand is less than 1. the case in which the income elasticity of demand for a good is positive but less than 1. a technique for calculating the percentage change in which changes in a variable are compared with the average, or midpoint, of the starting and final values. the percentage change in the quantity of a good demanded when a consumer’s income changes divided by the percentage change in the consumer’s income. the case in which the price elasticity of demand is greater than 1. the total value of sales of a good or service (the price of the good or service multiplied by the quantity sold). a measure of the effect of the change in the price of one good on the quantity demanded of the other; it is equal to the percentage change in the quantity demanded of one good divided by the percentage change in the price of another good. a measure of the responsiveness of the quantity of a good supplied to the price of that good; the ratio of the percentage change in the quantity supplied to the percentage change in the price as we move along the supply curve. the case in which any price increase will cause the quantity demanded to drop to zero; the demand curve is a horizontal line. the case in which the price elasticity of demand is exactly 1. the case in which the quantity demanded does not respond at all to changes in the price; the demand curve is a vertical line. |