Principles of Microeconomics Ch 4 Elasticity

elastic

demand is elastic with respect to price if price elasticity is greater than 1

inelastic

demand is inelastic with respect to price if price elasticity is less than 1

unit elastic

demand is unit elastic with respect to price if price elasticity of demand equals 1

price elasticity of demand

percentage change in quantity demanded that results from a 1 percentage change in price

perfectly elastic demand

price elasticity of demand is infinite

perfectly inelastic demand

price elasticity of demand is zero

perfectly inelastic supply

supply is perfectly _______ with respect to price if elasticity is zero.

perfectly elastic supply

supply is perfectly __________ with respect to price if elasticity of supply in infinite

income elasticity of demand

the percentage by which quantity demanded changes in response to a 1 percent change in income

cross-price elasticity of demand

the percentage by which quantity demanded of the first good changes in response to a 1 percent change in the price of the second

price elasticity of supply

the percentage change in quantity supplied that occurs in response to a 1 percent change in price