Term
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Definition
| The percentage change in quantity demanded is greater than the percentage change in price. Quantity demanded changes proportionately more than price changes. >1 |
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Term
| Price Elasticity of Demand |
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Definition
| a measure of the responsiveness of quantity demanded to changes in price |
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Term
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Definition
The percentage change in quantity demanded changes proportionately less than price changes
<1 |
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Term
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Definition
The percentage change in quantity demanded is equal to the percentage change in price. Quantity demanded changes proportionately to price changes
=1 |
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Term
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Definition
| a small percentage change in price causes an extremely large percentage change in quantity demanded( from buying all to buying nothing |
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Term
| Perfectly inelastic demand |
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Definition
| Quantity demanded does not change as price changes |
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Term
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Definition
Price times quantity sold
P*Q |
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Term
| Cross Elasticity of Demand |
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Definition
| Measures the responsiveness in quantity demanded of one good to changes in the price of another good |
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Term
| Income Elasticity of Demand |
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Definition
| Measures the responsiveness of quantity demanded to changes in income |
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Term
| Price elasticity of supply |
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Definition
| Measures the responsiveness of quantity supplied to changes in price |
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