What refers to the demand for goods with a lot of substitute? What questions are answered by price elasticity of demand? How does tax affect consumers?

Name: Introduction to Microeconomics 003: Exam #2
Brand: StudySoup
SKU: 2725926
Price: 45.00 USD
Availability: InStock
Rating: 5 (1 reviews)

Intro to Microeconomics 003: Midterm #2 Ch.4 Elasticity Elasticity – responsiveness of buyers and sellers to changes in market condition General elasticity – response of one variable when another variable change (size of change) Price elasticity of demand (E ) – a measure of responsivdness of Q to a change in price △Qd E = △ = change d △P Ed s always negative  demand curve has a negative slope Demand for goods with a lot of substitute = elastic Demand for goods without many substances = inelastic Demand for necessary goods = inelastic Demand for luxury goods = elastic Demand for goods over the long run = elastic Demand for goods over the short run = inelastic Demand for goods that mak