Category: Education
Created by: Timmwilson
Number of Blossarys: 22
English (EN) (Ed)A function of demand for which as the price increases or decreases, the demand of the product changes. Ed=abs(%change in quantity demanded/%change in price). inelastic<1. unit elastic=1. perfectly ...
Total revenue = price per unit * quantity sold. Also known as total sales.
Represents how the quantity of a product changes, as income for an individual or group changes. Formula: Ied = % change in qty demanded / % change in income. Income elasticity is positive for normal ...
Defines the price at which substitute products become interchangeable. Formula: cped = % change in quantity of X demanded / % change in the price of Y. Cross price elasticity is positive for ...
Defines the relationship of quantity supplied to the effect on price. Formula: PeS = %change in quantity supplied / % change in price. Perfectly inelastic supply = 0. Perfectly elastic supply > 0.
The amount a consumer is willing to pay for a product – the price the consumer actually pays. Can be used to measure the utility a consumer feels.
The price a producer receives for a product – the marginal cost of production.
By: Timmwilson