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20 Cards in this Set
- Front
- Back
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elasticity of demand
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measures responsiveness of product demand to changes in one of its determinants
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elasticity
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percentage change in one variable in relation to the percentage change in another variable
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elasticity of supply
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measures the responsiveness of product supply to change in its determinants particularly price
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price elasticity
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measures percentage change in quantity with respect to percentage change in price.
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price elasticity of demand
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measures responsiveness of quantity demanded in a good/service with respect to the change in its price.
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point elasticity
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measures elasticity at a particular point
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arc elasticity
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measures elasticity between two points
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price elastic demand
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€>1
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price inelastic demand
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€<1
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unitary elastic demand
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€=1
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perfectlr elastic demand
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€=8
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perfectly inelastic demand
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€=0
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income elasticity of demand
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the responsiveness of quantity demanded in r response to a change in income
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cross elasticity of demand
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measures responmsiveness off quantity demanded of a certain good or services
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price elasticity of supply
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measures responsiveness of quantity supplied in response to a percentage change in the price of goods or services
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price elastic supply
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a change in price leads to a greater change in quantity supplied
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price inelastic supply
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a change in price leads to a lesser change in quantity supplied
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unitary elastic supply
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a change in price leads to an equal change in quantity supplied
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perfectly elastic supply
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there is no change in price, and there is an infinite change in quantity supplied
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perfectly inelastic supply
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change in price has no effect on quantity supplied
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