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Cross-price elasticity of demand

The percentage change in 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 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-such as the quantity demanded of a product-responds to changes in another economic variable-such as the product's price.

Income elasticity of demand

A measure of the responsiveness of quantity demanded to changes in income, measured by the percentage change in quantity demanded divided by the percentage change in income.

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 absolute value.

Perfectly elastic demand

Demand is perfectly elastic when a change in price results in an infinite change in quantity demanded.

Perfectly inelastic demand

Demand is perfectly inelastic when a change in price results in no change in quantity demanded.

Price elasticity of demand

The responsiveness of the quantity demanded to a change in price, measured by dividing the percentage change in the quantity demanded of a product by the percentage change in the product's price.

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 received by a seller of a good or service, calculated by multiplying price per unit by the number of units sold.

Unit-elastic demand

Demand is unit-elastic when the percentage change in quantity demanded is equal to the percentage change in price, so the price elasticity is equal to 1 in absolute value.