Term

Definition
The ratio of the percentage change in a dependent variable to a percentage change in an independent variable. 


Term
Price Elasticity of Demand 

Definition
The percentage change in quantity demanded of a particular good or service divided by the percentage change in the price of that good or service, all other things unchanged. 


Term

Definition
Measure of elasticity, which is based on percentage changes relative to the average value of each variable between two points 


Term

Definition
A firm's output multiplied by the price at which it sells that output. 


Term

Definition
Situation in which the absolute value of the price elasticity of demand is greater than 1. 


Term

Definition
Situation in which the absolute value of the price elasticity of demand is equal to 1. 


Term

Definition
Situation in which the absolute value of the price elasticity of demand is less than 1. 


Term

Definition
Situation in which the price elasticity of demand is zero. 


Term

Definition
Situation in which the price elasticity of demand is infinte 


Term
Income Elasticity of Demand 

Definition
The percentage change in quantity demanded at a specific price divided by the percentage change in income that produced the demand change, all other things unchanged. 


Term
Cross Price Elasticity of Demand 

Definition
It equals the percentage change in the quantity demanded of one good or service at a specific price divided by the percentage change in the price of a related good or service. 


Term
Price Elasticity of Supply 

Definition
The ratio of the percentage change in quantity supplied of a good or service to the percentage change in its price, all other things unchanged. 

