Term

Definition
a measure of the responsiveness of quantity demanded or quantity supplied to one of its determinants 


Term
Price Elasticity of Demand 

Definition
a measure of how much the quantity demanded of a good responds to a changve in the price of that good, computed as the percentage change in quantity demanded divided by the percentage change in price
Percent elasticity of demand=
Percentage change in quantity demanded

Percentage change in price 


Term

Definition
the amount paid by buyers and received by sellers of a good, computed as the price of the good times the quantity sold
Total Revenue=Price*Quantity Sold 


Term
Income Elasticity of Demand 

Definition
a measure of how much the quantity demanded of a good responds to a change in consumers' income, computed as the percentage change in quantity demanded divided by the percentage change in income 


Term
CrossPrice Elasticity of Demand 

Definition
a measure of how much the quantity demanded of one good responds tha change in the price of another good, computed as the percentage change in quantity demanded of the first good divided by the percentage change in the price of the second good
% change in quantity of product A

% change in price of product B 


Term
Price Elasticity of Supply 

Definition
a measure of how much the quantity supplied of a good responds to a change in the price of theat good, computed as the percentage change in quantity supplied divided by the percentage change in price
% change in quantity supplied

% change in price 

