Term
| Price elasticity of demand |
|
Definition
Percentage change in quantity demanded
devided by
percentage change in price |
|
|
Term
| Income elasticity of demand |
|
Definition
Percentage change in quantity demanded
devided by
Percentage change in income |
|
|
Term
| Cross-price elasticity of demand |
|
Definition
Percentage change in quantity demanded of good 1
devided by
Percentage change in the price of good 1 |
|
|
Term
| Price elasticity of supply |
|
Definition
Percentage change in quantity supplied
devided by
Percentage change in price |
|
|
Term
| Results of cross-price elasticity of demand |
|
Definition
+ means they are substitutes
- means they are compliments
0 means they are unrelated |
|
|
