FALL/SPRING/SUMMER
PCM
ECON 2302 MICROECONOMICS
Chapter 5
Below you will find the learning objective, concept, idea, term,
or theory that each question on the exam will cover. The numbers in the list
refer to the question number on Exam 2 that will test your knowledge of that
specific learning objective. You will also find a reference to the page
numbers in the textbook, Microeconomics, Explore & Apply: Activebook
Version 2.0 where the substance of each
question is explained. A much better understanding can often be attained by
working through the "active graphs" and "smart graphs"
connected to many of these objectives in the online material.
| |
After reading this chapter, you should be able to:
- Discuss
how elasticity is used to measure responsiveness of a dependent
variable to changes in an independent one and calculate elasticity
either using the midpoint formula or not using it. Page 74
- Define
and compute the elasticity of demand. Page 76
- Distinguish
between elastic and inelastic demand curves and identify the
elasticity of various goods and services. Page 77-78
- Discuss
the demand curves for which measured elasticity does not change and
explain their significance, if any. Pages 83-84
- Explain
the impact of a price change on the total revenue earned by selling
a good based on its elasticity. Pages 79-81
- Define
the income elasticity of demand and explain the difference between
normal goods and inferior goods. Page 84-85
- Define
the cross elasticity of demand and explain the difference between
substitutes and complements. Page 84-85
- Define
and compute the elasticity of supply and the different general types
of elasticity (including the extremes). Page 86
- Identify
who ultimately pays a sales tax by using your knowledge of
elasticity. Pages 87-88
- Discuss
the war on drugs with reference to the elasticity of demand for
them. Pages 89-91
|