LSUS MBA701 MOD 2 | 2025/2026 |LATET UPDATE

MBA701 | MOD 2




1. (TERM) measures the responsiveness of the quantity demanded of a good to a change in its price.



It is computed as the percentage change in quantity demanded divided by the percentage change in price.: Price Elasticit

of Demand

2. (Elasticity) demand curve indicate that the quantity demanded responds to price changes in a greater than

proportional manner.: Elastic Demand

3. (Elasticity) demand curve is one where a given percentage change in price will cause a smaller percentage change

in quantity demanded.: Inelastic Demand

4. (Elasticity) means that a given percentage change in price leads to an equal percentage change in quantity

demanded.: Unitary Elasticity

5. TERM; Price elasticity of demand at a specific point on the demand curve instead of over a range of it.:

Point of Elasticity

6. To

measure income price elasticity of demand, we use change in

instead of price as the denominator.: Income

7. To measure cross price elasticity, we use the change in the price of good b as the .:

Denominator

8. (Mid Point Method) Percentage change in quantity demanded divided by percentage change in price.



This is: where Q1 and Q2 are points on the demand curve and P1 and P2 are the corresponding prices.: Price Elasticity

of Demand

9. TERM; The percentage change in one variable relative to a percentage change in another.: Elasticity
1/
8

, MBA701 | MOD 2

10. percent change in A


=

percent change in B: Elasticity

11. TERM; the percentage change in quantity demanded divided by the percent- age change in price: Price

Elasticity of Demand (Ep)

12. % change in Q


=

% change in P: Price Elasticity of Demand (Ep)




2/
8