Google
Wednesday 
January 24, 2018 

AmosWEB means Economics with a Touch of Whimsy!

AmosWEBWEB*pediaGLOSS*aramaECON*worldCLASS*portalQUIZ*tasticPED GuideXtra CrediteTutorA*PLS
DEMAND ELASTICITY AND TOTAL EXPENDITURE: The notion that price-induced changes in total expenditure for a good (price times quantity) depends on the relative price elasticity of demand. In particular, for relatively elastic demand (1 < E < ∞) changes in price cause total expenditure to change in the opposite direction. An increase in price causes total expenditure to fall and a decrease in price causes total expenditure to rise. For relatively inelastic demand (0 < E < 1) changes in price cause total expenditure to change in the same direction. An increase in price causes total expenditure to rise and a decrease in price causes total expenditure to fall. For unit elastic demand (E =1) price changes do not cause any change in total expenditure. Total expenditure is the same whether price increases or decreases.

Visit the GLOSS*arama

Most Viewed (Number) Visit the WEB*pedia

Lesson 15: Aggregate Market | Unit 1: The Concept Page: 1 of 22

Topic: What It Is <=PAGE BACK | PAGE NEXT=>

In this lesson we will learn about the aggregate market and how it is used to understand and explain the macroeconomy.

A definition:

  • The aggregate market is the combined product markets for all final goods and services produced in the economy in a given time period, usually one year.
  • It combines aggregate demand and aggregate supply to analyze the price level and real production.
  • Everyone is part of the aggregate market: the household, business, government, and foreign sectors.
  • The aggregate market (also called AD/AS analysis) is a tool for explaining the macroeconomy

Course Home | Lesson Menu | Page Back | Page Next

SHORT-RUN PRODUCTION ANALYSIS

An analysis of the production decision made by a firm in the short run, with the ultimate goal of explaining the law of supply and the upward-sloping supply curve. The central feature of this short-run production analysis is the law of diminishing marginal returns, which results in the short run when larger amounts of a variable input, like labor, are added to a fixed input, like capital. A contrasting analysis is long-run production analysis.

Complete Entry | Visit the WEB*pedia


APLS

GREEN LOGIGUIN
[What's This?]

Today, you are likely to spend a great deal of time lost in your local discount super center wanting to buy either a large stuffed brown and white teddy bear or a replacement washer for your kitchen faucet. Be on the lookout for small children selling products door-to-door.
Your Complete Scope

This isn't me! What am I?

Only 1% of the U.S. population paid income taxes when the income tax was established in 1914.
"Wherever you go, no matter what the weather, always bring your own sunshine."

-- Anthony J. D'Angelo

IAB
Inter-American Bank
A PEDestrian's Guide
Xtra Credit
Tell us what you think about AmosWEB. Like what you see? Have suggestions for improvements? Let us know. Click the User Feedback link.

User Feedback



| AmosWEB | WEB*pedia | GLOSS*arama | ECON*world | CLASS*portal | QUIZ*tastic | PED Guide | Xtra Credit | eTutor | A*PLS |
| About Us | Terms of Use | Privacy Statement |

Thanks for visiting AmosWEB
Copyright ©2000-2018 AmosWEB*LLC
Send comments or questions to: WebMaster