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INDEX: A measure of the relative average of a group of items compared to a given base value. Index measures are commonly used in economics to combine and compare diverse measures. One common type of index measure is for prices, such as the Consumer Price Index and the Dow Jones Industrial Average of corporate stock prices. Another noted type of index measure is to track macroeconomic activity, especially the index leading economic indicators. Indexes are usually weighted averages rather than simple arithmetic means that are measured relative to a base value or period. The Consumer Price Index, for example, measures the prices of consumer good, weighted by the quantities purchased. The value of a given period is then stated relative to a base year value, which generates a pure, "unitless" number in the range of 100 (give or take).
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Lesson 12: Elasticity and Demand | Unit 2: The Continuum
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Page: 9 of 25
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In this unit, you should have learned about:- How a given shift of the supply curve can result in different changes in equilibrium price and quantity based on the price elasticity of demand.
- That the coefficient of elasticity forms a continuum ranging from 0 to infinity.
- The five elasticity alternatives identified by segmenting the elasticity continuum -- perfectly elastic, relatively elastic, unit elastic, relatively inelastic, and perfectly inelastic.
- The different shapes of demand curves with different elasticities.
- Perfectly inelastic demand is a vertical demand curve.
- Perfectly elastic demand is a horizontal demand curve.
- Unit elastic demand is a concave demand curve without constant slope.
- Why relatively elastic demand curves are "sort of" flat and the relatively inelastic demand curves are "sort of" steep.
- Why this preceding statement is not technically correct because slope does NOT indicate elasticity.
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AVERAGE FACTOR COST, PERFECT COMPETITION Total factor cost per unit of factor input employed by a perfectly competitive firm in the production of output, found by dividing total factor cost by the quantity of factor input. Average factor cost, abbreviated AFC, is generally equal to the factor price. However, using the longer term average factor cost makes it easier to see the connection to related terms, including total factor cost and marginal factor cost.
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ORANGE REBELOON
[What's This?]
Today, you are likely to spend a great deal of time waiting for visits from door-to-door solicitors trying to buy either a rotisserie oven that can also toast bread or a flower arrangement in a coffee cup for your father. Be on the lookout for poorly written technical manuals.
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It's estimated that the U.S. economy has about $20 million of counterfeit currency in circulation, less than 0.001 perecent of the total legal currency.
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"Old age isn't so bad when you consider the alternative. " -- Cato, Roman orator
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DOT
Department of the Treasury
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