Elasticity

Price Elasticity of Demand (PED)

Price Elasticity of Demand shows the responsiveness, or elasticity, of the quantity demanded of a product to a change in its price.

Price Elasticity of Supply (PES)

Price Elasticity of Supply shows the responsiveness, or elasticity, of the quantity supplied of a good or service to a change in its price

Elasticity of Demand

A consumer's willingness to purchase a product in response to a change in price or income. Elasticity of Demand is either: - Perfectly Elastic - Elastic - Unit Elastic - Inelastic - Perfectly Inelastic

Cross Elasticity of Demand (XED)

A measure of the responsiveness in quantity demanded of one good to changes in the price of another good.

Elasticity of Supply

A producer's willingness to supply a product in response to a change in price. Elasticity of Supply is either: - Perfectly Elastic - Elastic - Unit Elastic - Inelastic - Perfectly Inelastic

Determinants of Price Elasticity of Demand

Factors that determine the Elasticity of Demand. These include: - Number of Close Substitutes - Proportion of Consumer Income - Timeframe - Necessity of the Product

Determinants of Price Elasticity of Supply

Factors that determine the Elasticity of Supply. These include: - Timeframe - Ability to store stock - Spare Capacity - FOP Mobility

Income Elasticity of Demand (YED)

In economics, income elasticity of demand measures the responsiveness of the demand for a good to a change in the income of the people demanding the good, ceteris paribus.

Primary Commodities

Material in a raw or unprocessed state, which is extracted or harvested and requires minimal processing before being used.

Elasticity

The degree to which the demand or supply of a product is sensitive to changes in price or income.

Engel Curve

a curve that plots the relationship between the quantity of X consumed and income

Revenue

the entire amount of income before any deductions are made