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Cross-price elasticity of demand
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A measure of how responsive the demand of one good is to price chnages of another. It measures the percent change in quantity demanded that follows from a 1% change in the price of another good.
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Elastic
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When the absolute value of the percent change in quantity is larger than the absolute value of the percent change in price, which means that the absolute value of price elasticity is greater than 1.
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Income elasticity of demand
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A measure of how responsive the demand for a good is to changes in income. It measures the percent change in quantity demanded that follows from a 1% change in income.
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Inelastic
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When the absolute value of a good's price elasticity of demand is less than 1
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Perfectly inelastic
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When the quantity does not respond at all to a price change.
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Perfectly elastic
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When any change in price leads to an infinitely large change in quantity
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Price elasticity of demand
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A measure of how responsive buyers are to price changes. It measures the percent change in quantity demanded that follows from a 1% price change.
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Price elasticity of supply
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A measure of how responsive sellers are to price changes. It measures the percent change in quantity supplied that follows from a 1% price change.
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Total revenue
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The total amount you recieve from buyers, which is calculated as (Price x Quantity)
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