Home > Term: elasticity
elasticity
A measure of responsiveness of one economic variable to another -- usually the responsiveness of quantity to price along a supply or demand curve -- comparing percentage changes (%) or changes in logarithms (d ln). The arc elasticity of x with respect to y is = %x/%y. The point elasticity is = d lnx/d lny = (y/x)(dx/dy).
- Part of Speech: noun
- Industry/Domain: Economy
- Category: International economics
- Company: University of Michigan
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Creator
- Noroc
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