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11 Cards in this Set

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What is price elasticity of demand?
Percentage change in quantity demanded that results from a 1 percent change in price.
What is the definition of elastic?
Demand is elastic with respect to price if price elasticity of demand is greater than 1.
What is inelastic?
Demand is inelastic with respect to price if price elasticity of demand is less than 1.
What is UNIT ELASTIC?
Demand is unit elastic with respect to price if price elasticity of demand equals 1.
What is perfectly elastic demand?
demand is perfectly elastic with respect to price if price elasticity of demand is infinite.
What is perfectly inelastic demand?
Demand is perfectly inelastic with respect to price if price elasticity of demand is ZERO.
What is cross-price elasticity of demand?
The percentage by which quantity demanded of the first good changes in response to a 1 percent change in the price of the second.
What is Income elasticity of demand?
The percentage by which quantity demanded changes in response to a 1 percent change in income.
What is price elasticity of supply?
The percentage change in quantity supplied that occurs in response to a 1 percent change in price.
What is perfectly inelastic supply?
Supply is perfectly inelastic with respecty to price if elasticity is ZERO.
what is perfectly elastic supply?
Supply is perfectly elastic with respect to price if elasticity of supply is infinite.