AP Microeconomics Flashcards: Other Elasticities

Study Other Elasticities in AP Microeconomics with focused flashcards that help you recognize the idea, recall the key rule, and apply it in practice-style prompts.

AP Microeconomics

Other Elasticities

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QUESTION

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What elasticity measures responsiveness of demand to income changes?

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ANSWER

Income elasticity of demand. Shows how demand changes with consumer income.

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What this deck covers

This deck focuses on Other Elasticities, giving you a quick way to review the definitions, rules, and examples that matter most for AP Microeconomics.

How to use these flashcards

Work through these flashcards in short sessions. Try to answer each prompt before flipping the card, then revisit any cards you miss until the explanation feels automatic.

All flashcards

Flashcard 1: What elasticity measures responsiveness of demand to income changes?

Answer: Income elasticity of demand. Shows how demand changes with consumer income.

Flashcard 2: Identify the type of elasticity: $E_{i} = 1.2$

Answer: Income elasticity indicating a luxury good. Greater than 1 indicates luxury good classification.

Flashcard 3: State the relationship between two goods when cross-price elasticity is positive.

Answer: The goods are substitutes. Higher price of one good increases demand for the other.

Flashcard 4: Calculate income elasticity if demand decreases 5% as income increases 10%.

Answer: -0.5. $\frac{-5\%}{10\%} = -0.5$

Flashcard 5: Define perfectly inelastic supply.

Answer: Supply elasticity is zero. Quantity supplied doesn't respond to price changes.

Flashcard 6: Calculate income elasticity if demand decreases 5% as income increases 10%.

Answer: -0.5. $\frac{-5\%}{10\%} = -0.5$

Flashcard 7: Identify the type of elasticity: $E_{xy} = -1.5$

Answer: Cross-price elasticity indicating complementary goods. Negative cross-price elasticity indicates complementary relationship.

Flashcard 8: What elasticity is used to determine the relationship between goods?

Answer: Cross-price elasticity of demand. Measures how one good's demand responds to another's price.

Flashcard 9: What does a price elasticity of supply less than one indicate?

Answer: Supply is inelastic. Supply responds proportionally less than price changes.

Flashcard 10: What does a unitary price elasticity of supply mean?

Answer: Supply elasticity is one. Supply responds proportionally equal to price changes.

Flashcard 11: Calculate the price elasticity of supply if supply increases 20% with a 10% price increase.

Answer:

$\frac{20\%}{10\%} = 2$

Flashcard 12: What does an income elasticity of -0.5 indicate?

Answer: The good is inferior. Negative value means demand falls as income rises.

Flashcard 13: What does a zero cross-price elasticity indicate about two goods?

Answer: The goods are unrelated. Price changes of one good don't affect demand for the other.

Flashcard 14: Calculate the price elasticity of supply if supply increases 20% with a 10% price increase.

Answer:

$\frac{20\%}{10\%} = 2$

Flashcard 15: Which elasticity would indicate a necessity good?

Answer: Income elasticity between 0 and 1. Between 0 and 1 indicates normal good with proportional response.

Flashcard 16: Identify the elasticity when a good is a normal good.

Answer: Positive income elasticity of demand. Normal goods have demand that increases with income.

Flashcard 17: What are goods with a cross-price elasticity of zero called?

Answer: Independent goods. Zero cross-price elasticity indicates no relationship.

Flashcard 18: What would you expect for cross-price elasticity of complementary goods?

Answer: Negative value. Complements move in opposite directions with price changes.

Flashcard 19: What does a zero cross-price elasticity indicate about two goods?

Answer: The goods are unrelated. Price changes of one good don't affect demand for the other.

Flashcard 20: What would you expect for cross-price elasticity of complementary goods?

Answer: Negative value. Complements move in opposite directions with price changes.

Flashcard 21: What is the significance of an income elasticity greater than one?

Answer: The good is a luxury good. Demand increases faster than income rises.

Flashcard 22: What is the significance of an income elasticity less than one but positive?

Answer: The good is a necessity. Demand increases but slower than income rises.

Flashcard 23: What indicates a good with strong substitute relationships in elasticity terms?

Answer: High positive cross-price elasticity. Large positive value indicates strong substitute relationship.

Flashcard 24: Find the cross-price elasticity if demand for good A decreases 20% when price of good B increases 10%.

Answer: -2. $\frac{-20\%}{10\%} = -2$

Flashcard 25: State the relationship between two goods when cross-price elasticity is negative.

Answer: The goods are complements. Higher price of one good decreases demand for the other.

Flashcard 26: What does perfectly elastic supply mean for a price change?

Answer: Infinite elasticity; any price change alters supply. Supply is infinitely responsive to price changes.

Flashcard 27: Calculate the price elasticity of supply if supply decreases 10% with a 20% price drop.

Answer: 0.5. $\frac{-10\%}{-20\%} = 0.5$

Flashcard 28: What is the formula for cross-price elasticity of demand?

Answer: $E_{xy} = \frac{\text{Percentage change in quantity demanded of good } x}{\text{Percentage change in price of good } y}$ . Measures how demand for good x responds to price changes in good y.

Flashcard 29: Define perfectly inelastic supply.

Answer: Supply elasticity is zero. Quantity supplied doesn't respond to price changes.

Flashcard 30: Find the cross-price elasticity if demand for good A decreases 20% when price of good B increases 10%.

Answer: -2. $\frac{-20\%}{10\%} = -2$

Flashcard 31: What does a price elasticity of supply equal to zero indicate?

Answer: Perfectly inelastic supply. Zero elasticity means supply doesn't respond to price.

Flashcard 32: What does a price elasticity of supply greater than one indicate?

Answer: Supply is elastic. Supply responds proportionally more than price changes.

Flashcard 33: What does a cross-price elasticity of demand less than zero signify?

Answer: Goods are complements. Negative cross-price elasticity indicates complementary goods.

Flashcard 34: What does an income elasticity of -0.5 indicate?

Answer: The good is inferior. Negative value means demand falls as income rises.

Flashcard 35: What elasticity measures responsiveness of demand to income changes?

Answer: Income elasticity of demand. Shows how demand changes with consumer income.

Flashcard 36: Identify the elasticity when a good is an inferior good.

Answer: Negative income elasticity of demand. Inferior goods have demand that decreases as income rises.

Flashcard 37: What is the significance of an income elasticity greater than one?

Answer: The good is a luxury good. Demand increases faster than income rises.

Flashcard 38: What does a cross-price elasticity of demand greater than zero signify?

Answer: Goods are substitutes. Positive cross-price elasticity indicates substitute relationship.

Flashcard 39: What does perfectly elastic supply mean for a price change?

Answer: Infinite elasticity; any price change alters supply. Supply is infinitely responsive to price changes.

Flashcard 40: What indicates a good with strong substitute relationships in elasticity terms?

Answer: High positive cross-price elasticity. Large positive value indicates strong substitute relationship.

Flashcard 41: Calculate the price elasticity of supply if supply decreases 10% with a 20% price drop.

Answer: 0.5. $\frac{-10\%}{-20\%} = 0.5$

Flashcard 42: What does a price elasticity of supply less than one indicate?

Answer: Supply is inelastic. Supply responds proportionally less than price changes.

Flashcard 43: Which elasticity would indicate a necessity good?

Answer: Income elasticity between 0 and 1. Between 0 and 1 indicates normal good with proportional response.

Flashcard 44: State the relationship between two goods when cross-price elasticity is positive.

Answer: The goods are substitutes. Higher price of one good increases demand for the other.

Flashcard 45: What does a cross-price elasticity of demand less than zero signify?

Answer: Goods are complements. Negative cross-price elasticity indicates complementary goods.

Flashcard 46: What is the formula for price elasticity of supply?

Answer: $E_s = \frac{\text{Percentage change in quantity supplied}}{\text{Percentage change in price}}$ . Measures supply responsiveness to price changes.

Flashcard 47: Identify the type of elasticity: $E_{xy} = -1.5$

Answer: Cross-price elasticity indicating complementary goods. Negative cross-price elasticity indicates complementary relationship.

Flashcard 48: What is the formula for income elasticity of demand?

Answer: $E_{i} = \frac{\text{Percentage change in quantity demanded}}{\text{Percentage change in income}}$ . Measures how quantity demanded responds to income changes.

Flashcard 49: What type of good has a positive income elasticity of demand?

Answer: Normal good. Positive income elasticity defines normal goods.

Flashcard 50: What are goods with a cross-price elasticity of zero called?

Answer: Independent goods. Zero cross-price elasticity indicates no relationship.

Flashcard 51: Calculate the income elasticity if quantity demanded rises 10% with a 5% income increase.

Answer:

$\frac{10\%}{5\%} = 2$

Flashcard 52: What is the relationship between goods with a cross-price elasticity of 0.8?

Answer: Substitute goods. Positive cross-price elasticity indicates substitute relationship.

Flashcard 53: Calculate the cross-price elasticity if quantity demanded rises 5% with a 10% price increase of another good.

Answer: 0.5. $\frac{5\%}{10\%} = 0.5$

Flashcard 54: What does a cross-price elasticity of -0.3 imply?

Answer: Weak complementary relationship. Small negative value indicates weak complementary relationship.

Flashcard 55: What elasticity is used to determine the relationship between goods?

Answer: Cross-price elasticity of demand. Measures how one good's demand responds to another's price.

Flashcard 56: What is the relationship between goods with a cross-price elasticity of 0.8?

Answer: Substitute goods. Positive cross-price elasticity indicates substitute relationship.

Flashcard 57: If two goods are unrelated, what is their cross-price elasticity?

Answer: Zero. No relationship means no cross-price effect.

Flashcard 58: What type of good has a positive income elasticity of demand?

Answer: Normal good. Positive income elasticity defines normal goods.

Flashcard 59: Identify the elasticity when a good is a normal good.

Answer: Positive income elasticity of demand. Normal goods have demand that increases with income.

Flashcard 60: State the relationship between two goods when cross-price elasticity is negative.

Answer: The goods are complements. Higher price of one good decreases demand for the other.

Flashcard 61: What does a price elasticity of supply greater than one indicate?

Answer: Supply is elastic. Supply responds proportionally more than price changes.

Flashcard 62: Describe the demand when cross-price elasticity of demand is zero.

Answer: Goods are independent. Zero cross-price elasticity means no relationship exists.

Flashcard 63: What type of good is indicated by a cross-price elasticity of 1.5?

Answer: Substitute good. Positive cross-price elasticity indicates substitute relationship.

Flashcard 64: Identify the type of elasticity: $E_{i} = 1.2$

Answer: Income elasticity indicating a luxury good. Greater than 1 indicates luxury good classification.

Flashcard 65: Describe the demand when cross-price elasticity of demand is zero.

Answer: Goods are independent. Zero cross-price elasticity means no relationship exists.

Flashcard 66: Calculate the cross-price elasticity if a 15% price increase leads to a 30% demand decrease.

Answer: -2. $\frac{-30\%}{15\%} = -2$

Flashcard 67: Calculate the cross-price elasticity if quantity demanded rises 5% with a 10% price increase of another good.

Answer: 0.5. $\frac{5\%}{10\%} = 0.5$

Flashcard 68: What does a price elasticity of supply equal to zero indicate?

Answer: Perfectly inelastic supply. Zero elasticity means supply doesn't respond to price.

Flashcard 69: What is the formula for income elasticity of demand?

Answer: $E_{i} = \frac{\text{Percentage change in quantity demanded}}{\text{Percentage change in income}}$ . Measures how quantity demanded responds to income changes.

Flashcard 70: What is the formula for price elasticity of supply?

Answer: $E_s = \frac{\text{Percentage change in quantity supplied}}{\text{Percentage change in price}}$ . Measures supply responsiveness to price changes.

Flashcard 71: If two goods are unrelated, what is their cross-price elasticity?

Answer: Zero. No relationship means no cross-price effect.

Flashcard 72: What does a cross-price elasticity of -0.3 imply?

Answer: Weak complementary relationship. Small negative value indicates weak complementary relationship.

Flashcard 73: What type of good is indicated by a cross-price elasticity of 1.5?

Answer: Substitute good. Positive cross-price elasticity indicates substitute relationship.

Flashcard 74: What is the formula for cross-price elasticity of demand?

Flashcard 75: Calculate the cross-price elasticity if a 15% price increase leads to a 30% demand decrease.

Answer: -2. $\frac{-30\%}{15\%} = -2$

Flashcard 76: What does a unitary price elasticity of supply mean?

Answer: Supply elasticity is one. Supply responds proportionally equal to price changes.

Flashcard 77: Calculate the income elasticity if quantity demanded rises 10% with a 5% income increase.

Answer:

$\frac{10\%}{5\%} = 2$

Flashcard 78: What is the significance of an income elasticity less than one but positive?

Answer: The good is a necessity. Demand increases but slower than income rises.

Flashcard 79: What does a cross-price elasticity of demand greater than zero signify?

Answer: Goods are substitutes. Positive cross-price elasticity indicates substitute relationship.

Flashcard 80: Identify the elasticity when a good is an inferior good.

Answer: Negative income elasticity of demand. Inferior goods have demand that decreases as income rises.

AP Microeconomics Flashcards: Other Elasticities

Other Elasticities

What this deck covers

How to use these flashcards

All flashcards

Flashcard 1: What elasticity measures responsiveness of demand to income changes?

Flashcard 2: Identify the type of elasticity: Ei=1.2E_{i} = 1.2Ei​=1.2

Flashcard 3: State the relationship between two goods when cross-price elasticity is positive.

Flashcard 4: Calculate income elasticity if demand decreases 5% as income increases 10%.

Flashcard 5: Define perfectly inelastic supply.

Flashcard 6: Calculate income elasticity if demand decreases 5% as income increases 10%.

Flashcard 7: Identify the type of elasticity: Exy=−1.5E_{xy} = -1.5Exy​=−1.5

Flashcard 8: What elasticity is used to determine the relationship between goods?

Flashcard 9: What does a price elasticity of supply less than one indicate?

Flashcard 10: What does a unitary price elasticity of supply mean?

Flashcard 11: Calculate the price elasticity of supply if supply increases 20% with a 10% price increase.

Flashcard 12: What does an income elasticity of -0.5 indicate?

Flashcard 13: What does a zero cross-price elasticity indicate about two goods?

Flashcard 14: Calculate the price elasticity of supply if supply increases 20% with a 10% price increase.

Flashcard 15: Which elasticity would indicate a necessity good?

Flashcard 16: Identify the elasticity when a good is a normal good.

Flashcard 17: What are goods with a cross-price elasticity of zero called?

Flashcard 18: What would you expect for cross-price elasticity of complementary goods?

Flashcard 19: What does a zero cross-price elasticity indicate about two goods?

Flashcard 20: What would you expect for cross-price elasticity of complementary goods?

Flashcard 21: What is the significance of an income elasticity greater than one?

Flashcard 22: What is the significance of an income elasticity less than one but positive?

Flashcard 23: What indicates a good with strong substitute relationships in elasticity terms?

Flashcard 24: Find the cross-price elasticity if demand for good A decreases 20% when price of good B increases 10%.

Flashcard 25: State the relationship between two goods when cross-price elasticity is negative.

Flashcard 26: What does perfectly elastic supply mean for a price change?

Flashcard 27: Calculate the price elasticity of supply if supply decreases 10% with a 20% price drop.

Flashcard 28: What is the formula for cross-price elasticity of demand?

Flashcard 29: Define perfectly inelastic supply.

Flashcard 30: Find the cross-price elasticity if demand for good A decreases 20% when price of good B increases 10%.

Flashcard 31: What does a price elasticity of supply equal to zero indicate?

Flashcard 32: What does a price elasticity of supply greater than one indicate?

Flashcard 33: What does a cross-price elasticity of demand less than zero signify?

Flashcard 34: What does an income elasticity of -0.5 indicate?

Flashcard 35: What elasticity measures responsiveness of demand to income changes?

Flashcard 36: Identify the elasticity when a good is an inferior good.

Flashcard 37: What is the significance of an income elasticity greater than one?

Flashcard 38: What does a cross-price elasticity of demand greater than zero signify?

Flashcard 39: What does perfectly elastic supply mean for a price change?

Flashcard 40: What indicates a good with strong substitute relationships in elasticity terms?

Flashcard 41: Calculate the price elasticity of supply if supply decreases 10% with a 20% price drop.

Flashcard 42: What does a price elasticity of supply less than one indicate?

Flashcard 43: Which elasticity would indicate a necessity good?

Flashcard 44: State the relationship between two goods when cross-price elasticity is positive.

Flashcard 45: What does a cross-price elasticity of demand less than zero signify?

Flashcard 46: What is the formula for price elasticity of supply?

Flashcard 47: Identify the type of elasticity: Exy=−1.5E_{xy} = -1.5Exy​=−1.5

Flashcard 48: What is the formula for income elasticity of demand?

Flashcard 49: What type of good has a positive income elasticity of demand?

Flashcard 50: What are goods with a cross-price elasticity of zero called?

Flashcard 51: Calculate the income elasticity if quantity demanded rises 10% with a 5% income increase.

Flashcard 52: What is the relationship between goods with a cross-price elasticity of 0.8?

Flashcard 53: Calculate the cross-price elasticity if quantity demanded rises 5% with a 10% price increase of another good.

Flashcard 54: What does a cross-price elasticity of -0.3 imply?

Flashcard 55: What elasticity is used to determine the relationship between goods?

Flashcard 56: What is the relationship between goods with a cross-price elasticity of 0.8?

Flashcard 57: If two goods are unrelated, what is their cross-price elasticity?

Flashcard 58: What type of good has a positive income elasticity of demand?

Flashcard 59: Identify the elasticity when a good is a normal good.

Flashcard 60: State the relationship between two goods when cross-price elasticity is negative.

Flashcard 61: What does a price elasticity of supply greater than one indicate?

Flashcard 62: Describe the demand when cross-price elasticity of demand is zero.

Flashcard 63: What type of good is indicated by a cross-price elasticity of 1.5?

Flashcard 64: Identify the type of elasticity: Ei=1.2E_{i} = 1.2Ei​=1.2

Flashcard 65: Describe the demand when cross-price elasticity of demand is zero.

Flashcard 66: Calculate the cross-price elasticity if a 15% price increase leads to a 30% demand decrease.

Flashcard 67: Calculate the cross-price elasticity if quantity demanded rises 5% with a 10% price increase of another good.

Flashcard 68: What does a price elasticity of supply equal to zero indicate?

Flashcard 69: What is the formula for income elasticity of demand?

Flashcard 70: What is the formula for price elasticity of supply?

Flashcard 71: If two goods are unrelated, what is their cross-price elasticity?

Flashcard 72: What does a cross-price elasticity of -0.3 imply?

Flashcard 73: What type of good is indicated by a cross-price elasticity of 1.5?

Flashcard 74: What is the formula for cross-price elasticity of demand?

Flashcard 75: Calculate the cross-price elasticity if a 15% price increase leads to a 30% demand decrease.

Flashcard 2: Identify the type of elasticity: $E_{i} = 1.2$

Flashcard 7: Identify the type of elasticity: $E_{xy} = -1.5$

Flashcard 47: Identify the type of elasticity: $E_{xy} = -1.5$

Flashcard 64: Identify the type of elasticity: $E_{i} = 1.2$