- Module 47.1: For each case, choose the condition that characterizes demand: elas...
- Module 47.2: For the following goods, is demand elastic, inelastic, or unit-elas...
- Module 47.3: Which of the following is true if the price elasticity of demand fo...
- Module 47.4: Which of the following is correct for a price increase? When demand...
- Module 47.5: Total revenue is maximized when demand is a. elastic. b. inelastic....
Solutions for Chapter Module 47: Interpreting Price Elasticity of Demand
Full solutions for Krugman's Economics for AP® (High School) | 2nd Edition
the tendency for the mix of unobserved attributes to become undesirable from the standpoint of an uninformed party
Arrow’s impossibility theorem
a mathematical result showing that, under certain assumed conditions, there is no scheme for aggregating individual preferences into a valid set of social preferences
a shortfall of tax revenue from government spending
the equipment and structures used to produce goods and services
constant returns to scale
The property whereby long-run average total cost stays the same as the quantity of output changes
consumer price index (CPI)
a measure of the overall cost of the goods and services bought by a typical consumer
the quantity of output that minimizes average total cost
the property of a good whereby a person can be prevented from using it
the uncompensated impact of one person’s actions on the wellbeing of a bystander
financial institutions through which savers can directly provide funds to borrowers
income elasticity of demand
a measure of how much the quantity demanded of a good responds to a change in consumers’ income, computed as the percentage change in quantity demanded divided by the percentage change in income
the increase in total cost that arises from an extra unit of production
the study of how households and firms make decisions and how they interact in markets
the production of goods and services valued at current prices
two goods with right-angle indifference curves
a legal maximum on the price at which a good can be sold
the quantity of goods and services produced from each unit of labor input
a tax for which highincome taxpayers pay a larger fraction of their income than do low-income taxpayers
a theory of exchange rates whereby a unit of any given currency should be able to buy the same quantity of goods in all countries
an action taken by an informed party to reveal private information to an uninformed party