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