Economics, 3rd Edition

efficient scale 

the quantity of output that minimizes average 

total cost

elasticity 

a measure of the responsiveness of quantity demanded 

or quantity supplied to one of its determinants

endogenous variable 

a variable whose value is determined 

within the model

endowment effect 

where the value placed on something 

owned is greater than on an identical item not owned

Engel curve 

a line showing the relationship between demand 

and levels of income

entry limit pricing 

a situation where a firm will keep prices 

lower than they could be in order to deter new entrants

equilibrium or market price 

the price where the quantity 

demanded is the same as the quantity supplied

equilibrium quantity 

the quantity bought and sold at the 

equilibrium price

equity 

the property of distributing economic prosperity fairly 

among the members of society