| A | B |
|---|
| price elasticity of demand | % change in QD/% change in P |
| perfectly elastic demand curve | horizontal line |
| perfectly inelastice demand curve | vertical line |
| substitutes | the more of these there are, the most elastic the demand |
| luxuries | these items have elastic demand |
| addictive substances | these items have inelastic demand |
| time | the less you have of this, the more inelastic your demand |
| total revenue | P*Q |
| inelastic demand | P increases and TR increases |
| elastic demand | P increases and TR decreases |
| cross price elasticity of demand | determine whether goods are subs or comps |
| income elasticity of demand | determines whether goods are normal or inferior |
| short run | period of time in which at least one resource is fixed |
| long run | period of time in which all resources are variable |
| tax incidence | a measure of who pays a tax |
