Term
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Definition
| The ratio of the percentage change in a dependent variable to a percentage change in an independent variable. |
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Term
| Price Elasticity of Demand |
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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. |
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Term
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Definition
| Measure of elasticity, which is based on percentage changes relative to the average value of each variable between two points |
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Term
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Definition
| A firm's output multiplied by the price at which it sells that output. |
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Term
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Definition
| Situation in which the absolute value of the price elasticity of demand is greater than 1. |
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Term
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Definition
| Situation in which the absolute value of the price elasticity of demand is equal to 1. |
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Term
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Definition
| Situation in which the absolute value of the price elasticity of demand is less than 1. |
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Term
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Definition
| Situation in which the price elasticity of demand is zero. |
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Term
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Definition
| Situation in which the price elasticity of demand is infinte |
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Term
| Income Elasticity of Demand |
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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. |
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Term
| Cross Price Elasticity of Demand |
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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. |
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Term
| Price Elasticity of Supply |
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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. |
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