MicroEco Ch. 4 Word Scramble
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| Term | Definition |
| Price Elasticity of Demand | Consumers are highly responsive to price changes |
| Midpoint Formula | Averages the two prices and the two quantities as the reference points for computing the percentages |
| Elastic | Specific percentage change in price results in a larger percentage change in quantity demanded |
| Inelastic | Specific percentage change in price produces a smaller percentage change in quantity demanded |
| Perfectly Inelastic | Price change results in no change whatsoever in the quantity demanded |
| Perfectly Elastic | Small price reduction causes buyers to increase their purchases from zero o all they can obtain, the elasticity coefficient is infinite |
| Total Revenue | Total amount the seller receives from the sale of a product in a particular time period; calculated by multiplying the product price by the quantity sold |
| Total Revenue Test | Easiest way to infer whether demand is elastic or inelastic |
| Market Period | Period that occurs when the time immediately after a change in market price is too short for producers to respond with a change in quantity supplied |
| Short Run | Period of time too short to change plant capacity but long enough to use the fixed-sized plant more less intensively |
| Long Run | Time period long enough for firms to adjust their plant sizes and for new firms to enter the industry |
| Cross Elasticity of Demand | Measures how sensitive consumer purchases of one product are to change in the price of some other product |
| Income Elasticity of Demand | Measures he degree to which consumers respond to a change in their incomes by buying more or less of a particular good |
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