ECON 201 JMU Exam: ECON 201 JMU Study Guide: Updated A+ Score Guide

Equilibrium (Ansa situation in which the market price has reached the level at which quantity supplied equals quantity demanded Surplus Shortage (Ans- :a situation in which quantity supplied is greater than quantity demanded : a situation in which quantity demanded is greater than quantity supplied Elasticity (Ans- a measure of the responsiveness of quantity demanded or quantity supplied to a change in one of its determination Price Elasticity of Demand (Ans- a measure of how much the quantity demanded of a good response to a change in the price of that good, computed as thepercentage change in quantity demanded divided by the percent change in the price Total Revenue (Ans- the amount paid by buyers and received by sellers of a good, computed as the price of the good times the quantity sold Income Elasticity of Demand (Ans- a measure of how much the quantity demanded of a good responses to a change in consumers income, computed as the percentage change in quantity demanded divided by the percentage change in income Cross-Price elasticity of Demand (Ans- a measure of how much the quantity demanded of one good responds to a change in the price of another good, computed as the percent change in quantity demanded of the first good divided by the percentage change in the price of the second good. Price Elasticity of Supply (Ans- a measure of how much the quantity supplied of a good respond to a change in the price of that good, computed as the percentage change in quantity supplied divided by the percentage change in price