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