AP®︎ Microeconomics: Topic 2.5 Flashcards

Master key terms and definitions for Topic 2.5 of AP Microeconomics – Other Elasticities to help you prep for quizzes and the AP exam.

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Term

Other Elasticities

Definition

Measures responsiveness to changes in variables other than the good's own price.

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Other Elasticities
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Measures responsiveness to changes in variables other than the good's own price.

MKT-3.EMKT-3.E.9
Income Elasticity Of Demand
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Percentage change in quantity demanded divided by percentage change in consumer income.

MKT-3.EMKT-3.E.10
Zero Income Elasticity
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A value of zero means income changes do not affect quantity demanded.

MKT-3.EMKT-3.E.10
Cross-Price Elasticity Of Demand
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Percentage change in quantity demanded of one good divided by percentage change in another good's price.

MKT-3.EMKT-3.E.11
Normal And Inferior Goods
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Demand rises with income for normal goods and falls with income for inferior goods.

MKT-3.EMKT-3.E.10
Cross-Price Elasticity Relationships
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Positive values mean substitutes, negative values mean complements, and zero means unrelated goods.

MKT-3.EMKT-3.E.11