Elasticity Flashcards

1
Q

Define price elasticity of demand.

A

Price elasticity of demand is the percentage change in the quantity demanded for a good caused by a percentage change in the price of that good.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Define income elasticity of demand.

A

Income elasticity of demand measured the percentage change in the demand for a good in response to the percentage change in consumer income.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Define cross elasticity of demand.

A

Cross elasticity of demand measures the percentage change in the responsiveness of the quantity demanded for one good, caused by the quantity change in the price of another good.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Define price elasticity of supply.

A

Price elasticity of supply measures the percentage change in the degree of responsiveness of the supply of a good in relation to the percentage change in its own price.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Define elasticity.

A

Elasticity is the proportionate change in the demand or the supply of a good caused by a proportional change in price, level of income or the price of related goods.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly