Term
Price Elasticity of Demand 

Definition
Percentage change in quantity demanded that results from a 1 percent change in price 


Term

Definition
Demand is elastic with respect to price if price elasticity is greater than 1 


Term

Definition
Demand is inelastic with respect to price if price elasticity of demand is less than 1 


Term

Definition
Demand is unit elastic with respect to price if price elasticity of demand equals 1 


Term

Definition
Demand is perfectly elastic with respect to price if price elasticity of demand is finite 


Term
Perfectly Inelastic Demand 

Definition
Demand is perfectly inelastic with respect to price if price elasticity of demand is zero 


Term
CrossPrice Elasticity of Demand 

Definition
The percentage by which quantity demanded of the first good changes in response to a 1 percent change in the price of the second 


Term
Income Elasticity of Demand 

Definition
The percentage by which quantity demanded changes in response to a 1 percent change in income 


Term
Perfectly Inelastic Supply 

Definition
Supply is perfectly inelastic with respect to price if elasticity is zero 


Term

Definition
Supply is perfectly elastic with respect to price if elasticity of supply is infinite 

