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.
Price elasticity of demand Midpoint method Perfectly inelastic demand Elastic demand Inelastic demand Unit-elastic demand Total revenue Cross-price elasticity of demand Income elasticity of demand Income-elastic demand Income-inelastic demand Price elasticity of supply Perfectly inelastic supply Perfectly elastic supply Excise tax Tax rate Administrative costs | 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 when the price elasticity of demand is less than 1 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 percent change in the quantity demanded of one good divided by the percent change in the price of another good a tax on sales of a good or service a measure of the responsiveness of the quantity of a good supplied to the price of that good; the ratio of the percent change in the quantity supplied to the percent change in the price as we move along the supply curve. the amount of tax people are required to pay per unit of whatever is being taxed when the income elasticity of demand for a good is greater than 1 when the price elasticity of demand is greater than 1 (of a tax) the resources used by government to collect the tax, and by taxpayers to pay it, over and above the amount of the tax, as well as to evade it when the income elasticity of demand for a good is positive but less than 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 the case in which the price elasticity of demand is exactly 1 the ratio of the percent change in the quantity demanded to the percent change in the price as we move along the demand curve (dropping the minus sign) 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 a technique for calculating the percent change in which changes in a variable are compared with the average, or midpoint, of the starting and final values the total value of sales of a good or service. It is equal to the price multiplied by the quantity sold the percent change in the quantity of a good demanded when a consumer’s income changes divided by the percent change in the consumer’s income |
Price elasticity of demand, p. 144
Midpoint method, p. 146
Perfectly inelastic demand, p. 148
Perfectly elastic demand, p. 148
Elastic demand, p. 149
Inelastic demand, p. 149
Unit-elastic demand, p. 149
Total revenue, p. 150
Cross-price elasticity of demand, p. 155
Income elasticity of demand, p. 156
Income-elastic demand, p. 157
Income-inelastic demand, p. 158
Price elasticity of supply, p. 159
Perfectly inelastic supply, p. 159
Perfectly elastic supply, p. 159
Excise tax, p. 162
Tax rate, p. 164
Administrative costs, p. 168