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Elasticity
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A measure of the responsiveness of one variable to changes in another variable.
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Own Price Elasticity
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A measure of the responsiveness of the quantity demanded of a good to a change in the price of that good.
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Elastic Demand
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Absolute value of the own price elasticity is > 1
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Inelastic Demand
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Absolute value of the own price elasticity is < 1
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Unitary Elastic Demand
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Absolute value of the own price elasticity is = 1
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Perfectly elastic Demand
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The own price elasticity is infinite in absolute value. Demand curve is horizontal.
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Perfectly Inelastic Demand
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The own price elasticity is zero. Demand curve is vertical.
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Cross-Price Elasticity
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A measure of the responsiveness of the demand for a good to changes in the price of a related good.
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Income Elasticity
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A measure of the responsiveness of the demand for a good to changes in customer income.
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