| Term | Definition |
|---|
| elasticity | ia a measure of how responsive buyers and sellers are to changes in market conditions |
| price elasticity of demand | is the percentage change in quantity demanded given a percent change in the price |
| price elasticity of demand | is a measure of how much the quantity demanded of a good responds to change in the price of that good |
| elasticity | measures how much one variable responds to changes in another variable |
| elasticity | is a numerical measure of the responsiveness of Qd or Qs to one of its determinants |
| price elasticity of demand | measures how much Qd responds to a change in P. |
| price elasticity of demand | it measures the price sensitivity of buyers's demand |
| midpoint | is the number halfway between the start and end values, the average of those values |
| price elasticity | is higher when close substitutes are available |
| price elasticity | is higher for narrowly defined goods than broadly defined ones |
| price elasticity | is higher for luxuries than for necessities. |
| price elasticity | is higher in the long run than the short run. |
| price elasticity of demand | is closely related to the slope of the demand curve |
| perfectly inelastic demand | /Ep/=0 |
| inelastic demand | /Ep/<1 |
| unit elastic demand | /Ep/=1 |
| elastic demand | /Ep/>1 |
| perfectly elastic demand | /Ep/=infinity |
| price elasticity of supply | measures how much Qs responds to a change in P |
| price elasticity of supply | it measures sellers' price sensitivity |
| slope of the supply curve | is closely related to price elasticity of supply |
| income elasticity of demand | measures the response of Qd to a change in consumer income |
| cross-price elasticity of demand | measures the response of demand for one good to changes in the price of another good |
| substitute | e>0 (+) |
| complementary | e<0 (-) |
| income elasticity of demand | measures how much quantity demanded responds to changes in buyers' incomes |
| price elasticity of supply | is greater in the long run than in the short run |
| price elasticity of demand | equals percentage change in Qd divided by percentage change in P. |
Combine with other sets
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