Term
| Price Elasticity of Demand |
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Definition
| Percentage change in quantity demanded that results from a 1 percent change in price |
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Term
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Definition
| Demand is elastic with respect to price if price elasticity is greater than 1 |
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Term
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Definition
| Demand is inelastic with respect to price if price elasticity of demand is less than 1 |
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Term
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Definition
| Demand is unit elastic with respect to price if price elasticity of demand equals 1 |
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Term
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Definition
| Demand is perfectly elastic with respect to price if price elasticity of demand is finite |
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Term
| Perfectly Inelastic Demand |
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Definition
| Demand is perfectly inelastic with respect to price if price elasticity of demand is zero |
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Term
| Cross-Price Elasticity of Demand |
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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 |
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Term
| Income Elasticity of Demand |
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Definition
| The percentage by which quantity demanded changes in response to a 1 percent change in income |
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Term
| Perfectly Inelastic Supply |
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Definition
| Supply is perfectly inelastic with respect to price if elasticity is zero |
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Term
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Definition
| Supply is perfectly elastic with respect to price if elasticity of supply is infinite |
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