Microeconomics - Chapter 6
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5 Terms
Elasticity
A measure of how much one economic variable responds to changes in another economic variable
Elastic
The case where the percentage change in quantity demanded is greater than the percentage change in price, so the price elasticity is greater than one in absolute value
Inelastic
When the percentage change in quantity demanded is less than the percentage change in price, so the price elasticity is less than one in absolute value
Unit elastic
When the percentage change in quantity demanded is equal to the percentage change in price, so the price elasticity is equal to one in absolute value
Total revenue
The total amount of funds a seller receives from selling a good or service, calculated by multiplying price per unit by the number of units sold
Note 
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