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Cross-Price Elasticity of Demand
The percentage change in the quantity demanded of one good divided by the percentage change in the price of another good.
Elastic Demand
Demand is elastic when the percentage change in the Quantity demanded is greater than the percentage change in price, so the price elasticity is greater than 1 in absolute value.
Elasticity
A measure of how much one economic variable responds to changes in another economic variable.
Income Elasticity of Demand
Inelastic Demand
Demand is inelastic when the percentage change in quantity demanded is less than the percentage change in price, so the price elasticity is less than 1 in absolute value.
Perfectly Elastic Demand
Perfectly Inelastic Demand
Price Elasticity of Demand
Price Elasticity of Supply
The responsiveness of the quantity supplied to a change in price, measured by dividing the percentage change in the quantity supplied of a product by the percentage change in the product's price.
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.
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