Elasticity

Question 1

Elasticity

Answer 1

The measure of responsiveness in one variable when another changes

Question 2

PED

Answer 2

the responsiveness of the quantity demanded to a change in price

Question 3

PED formula

Answer 3

%change in QD / % change price

Question 4

PES

Answer 4

The responsiveness of a quantity supplied to a change in price

Question 5

PES formula

Answer 5

%change QS / % change price

Question 6

Cross price elasticity

Answer 6

The responsiveness of a demand in one good to a change in the price of another

Question 7

Cross price elasticity formula

Answer 7

% change QD A / % change price B

Question 8

Income Elasticity of demand

Answer 8

the responsiveness of demand to a change in consumer incomes

Question 9

income elasticity of demand formula

Answer 9

% change QD/ % change income

Question 10

Perfectly inelastic

Answer 10

one variable is unresponsive to changes in another. Change in price will have no effect on change in quantity demanded or quantity supplied

Question 11

Perfectly elastic

Answer 11

means that one variable is unresponsive to changes in another. Any change in price results in supply or demand falling to zero