Midterm 1 index card topics_4

Midterm 1 index card topics_4 - E = 0 Perfectly Inelastic E...

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E = 0 “Perfectly Inelastic” E = ∞ “Perfectly Elastic” When Ε 1, ˃ D = “elastic” When Ε 1, ˂ D = “inelastic” When Ε = 1, D = “unit elastic” Elasticity = measurement of people’s responsiveness Ε = %∆ Q D ÷ %∆ P = (∆ Q D ÷ Q D ) ÷ (∆ P ÷ P ) the demands for necessities The more time that passes since the last ∆ P , the larger the E . The larger the # of good substitutes, the larger the Ε . Demand for luxury goods tends to have larger E than. Tariff = tax on imported goods Import Quotas = quantitative restriction on amount of a good that can legally be imported Gov. intervenes thru P controls Exports: P US P ˂ WORLD Consumer Surplus ↓ Producer Surplus ↑
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This note was uploaded on 01/16/2012 for the course ECO 2023 taught by Professor Rush during the Fall '08 term at University of Florida.

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