Price Elasticity Flashcards
1
Q
It is used to understand how supply and demand changes when price changes in the market
A
Price elasticity
2
Q
It is used to measure how quantity demanded changes to change in price
A
Price elasticity of demand
3
Q
Percentage change in price is greater than 1
A
Elastic
4
Q
Percentage change in quantity is less than the price
A
Inelastic
5
Q
The quantity demanded has an equal to response to change in price
A
Unitary elastic
6
Q
There’s no change in quantity demanded, even though there is an increase in price
A
Perfectly inelastic
7
Q
The total sale of goods and services by the seller or producer
A
Total revenue in pricing decisions
8
Q
It is used to measure the quantity supplied to changes in price
A
Price elasticity of supply
