Elastic econ

Cross - Price Elasticity of Demand

Between two goods measures the effect of the change in one good's price on the quantity demanded of the other good. It is equal to the percent change in teh quantity demanded of one good divided by the percent change in the other good's price.

Income Elasticity of Demand

The percent of change in the quantity of a good demanded when a consumer's income changes divided by the percent change in the consumer's income

Income - Elastic

If the income elasticity of demand for that good is greater than 1

Income - Inelastic

If the iincome elasticity of demand for that good is positive but less than 1

Price Elasticity of Supply

a measure of the responnsiveness of the quantity of a good supplied to the price of that good. It is the ratio of the percent change in the quantity supplied to the percent change in the price as we move along the supply curve

Perfectly Inelastic Supply

When the price elasticity of a supply is zero, so that changes in the price or the good have no effect on the quantity supplied. A perfectly inelastic supply curve is a vertical line.

Perfectly Elastic Supply

If the quantity supplied is zero below the same price and infinite above that price. A perfectly elsatic supply curve is a horizontal line.

Perfectly Inelastic Demand

When the quantity demanded does not respond at all to changes in the price; the demand curve is a vertical line

Perfectly Elastic Demand

When any price increase will cause the quantity demanded to drop to zero; the demand curve is a horizontal line.

Elastic Demand

When the price elasticity of demand is greater than 1

Inelastic Demand

When the price elasticity of demand is less than 1

Unit - Elastic demand

When the price elasticity of demand is exactly 1

Total Revenue

The total value of sales of a good or service; equal to the price multiplied by the quantity.