Price elasticity of demand - Definitions Chapter 20 Price...

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Definitions Chapter 20 Price elasticity of demand- the percentage change in the quantity demanded of a product divided by the percentage change in the price of that product. Price discrimination- charging different customers different prices for the same product Cross-price elasticity of demand- the percentage change in the demand for one good divided by the percentage change in the price of a related good, everything else held constant Income elasticity of demand- the percentage change in the demand for a good divided by the percentage change in income, everything else held constant Inferior goods- goods for which the income elasticity of demand is negative Luxury goods- goods for which the income elasticity of demand is a large positive number Price elasticity of supply- the percentage change in the quantity supplied divided by the percentage change in price, everything else held constant Long run- a period of time long enough that the quantities of all resources can be varied Incidence- a measure of who pays a tax
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Price elasticity of demand - Definitions Chapter 20 Price...

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