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Cross-price elasticity of demand
The percentage change in quantity demanded of one good divided by the percentage change in the price of another good.
Elastic demand
Demand is elastic when the percentage change in quantity demanded is greater than the percentage change in price, so the price elasticity is greater than 1 in absolute value.
Elasticity
A measure of how much one economic variable-such as the quantity demanded of a product-responds to changes in another economic variable-such as the product's price.
Income elasticity of demand
A measure of the responsiveness of quantity demanded to changes in income, measured by the percentage change in quantity demanded divided by the percentage change in income.
Inelastic demand
Demand is inelastic when the percentage change in quantity demanded is less than the percentage change in price, so the price elasticity is less than 1 absolute value.
Perfectly elastic demand
Demand is perfectly elastic when a change in price results in an infinite change in quantity demanded.
Perfectly inelastic demand
Demand is perfectly inelastic when a change in price results in no change in quantity demanded.
Price elasticity of demand
The responsiveness of the quantity demanded to a change in price, measured by dividing the percentage change in the quantity demanded of a product by the percentage change in the product's price.
Price elasticity of supply
The responsiveness of the quantity supplied to a change in price, measured by dividing the percentage change in the quantity supplied of a product by the percentage change in the product's price.
Total revenue
The total amount of funds received by a seller of a good or service, calculated by multiplying price per unit by the number of units sold.
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