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Cards In This Set
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A general measure of responsiveness--an important cause and effect relationship in economics
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Elasticity
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The extent to which a change in price causes a change in the quantity demanded
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Demand elasticity
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When a given change in price causes a relatively larger change in quantity demanded
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Elastic
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Given change in price causes a relatively smaller change in the quantity demanded
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Inelastic
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A given change in price causes proportional change in quantity demanded; change in demand = percent change in price
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Unit elastic
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