AP Micro Unit 2
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9 Terms
1
New cards
Price elasticity < 1
Inelastic
2
New cards
Price elasticity > 1
elastic
3
New cards
Cross price elasticity equation
% Change in Qd of Good X / % change in P of Good Y
4
New cards
Positive cross price elasticity
Substitutes
5
New cards
Negative cross price elasticity
Complements
6
New cards
Cross price elasticity is 0
Unrelated
7
New cards
Income elasticity equation
% Change in Qd / % Change in income
8
New cards
Positive income elasticity
Normal good
9
New cards
negative income elasticity
inferior good