{"id":213,"date":"2020-03-24T04:51:30","date_gmt":"2020-03-24T04:51:30","guid":{"rendered":"https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/chapter\/glossary-elasticity\/"},"modified":"2023-05-22T19:20:51","modified_gmt":"2023-05-22T19:20:51","slug":"glossary-elasticity","status":"publish","type":"chapter","link":"https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/chapter\/glossary-elasticity\/","title":{"raw":"Glossary: Elasticity","rendered":"Glossary: Elasticity"},"content":{"raw":"<p class=\"hanging-indent\"><strong>constant unitary elasticity<\/strong> when a given percentage change in price leads to an equal percentage change in quantity demanded or supplied<\/p>\n<p class=\"hanging-indent\"><strong>cross-price elasticity of demand<\/strong> the percentage change in the quantity of good A that is demanded as a result of a percentage change in the quantity of good B demanded<\/p>\n<p class=\"hanging-indent\"><strong>elastic demand<\/strong> when the elasticity of demand is greater than 1, indicating a high responsiveness of quantity demanded to changes in price<\/p>\n<strong>elasticity<\/strong> the responsiveness of one variable to changes in another variable\n<p class=\"hanging-indent\"><strong>elasticity of savings<\/strong> the percentage change in the quantity of savings divided by the percentage change in interest rates<\/p>\n<p class=\"hanging-indent\"><strong>elastic supply<\/strong> when the elasticity of supply is greater than 1, indicating a high responsiveness of quantity supplied to changes in price<\/p>\n<strong>growth rate <\/strong>percentage change: the change in quantity divided by the quantity\n<p class=\"hanging-indent\"><strong>income elasticity of demand <\/strong>the percentage change in quantity demanded divided by the percentage change in income<\/p>\n<p class=\"hanging-indent\"><strong>inelastic demand <\/strong>when the elasticity of demand is smaller than 1, indicating a low responsiveness of quantity demanded price changes<\/p>\n<p class=\"hanging-indent\"><strong>inelastic supply <\/strong>when the elasticity of supply is smaller than 1, indicating a low responsiveness of quantity supplied to price changes<\/p>\n<p class=\"hanging-indent\"><strong>inferior good <\/strong>a good for which the quantity demanded falls as income rises, and the quantity demanded rises as income falls; income elasticity of demand for an inferior good is negative<\/p>\n<p class=\"hanging-indent\"><strong>infinite elasticity<\/strong> the extremely elastic situation of demand or supply in which the quantity changes by an infinite amount in response to any change in price; <em>also called \u201cperfect elasticity\u201d<\/em><\/p>\n<p class=\"hanging-indent\"><strong>normal good <\/strong>a good for which the quantity demanded rises as income rises, and the quantity demanded falls as income falls; income elasticity of demand for a normal good is positive<\/p>\n<p class=\"hanging-indent\"><strong>price elasticity <\/strong>the relationship between the percent change in price resulting in a corresponding percentage change in the quantity demanded or supplied<\/p>\n<p class=\"hanging-indent\"><strong>price elasticity of demand<\/strong> percentage change in the quantity of a good or service&nbsp;<em>demanded<\/em> divided by the percentage change in price<\/p>\n<p class=\"hanging-indent\"><strong>price elasticity of supply<\/strong> percentage change in the quantity of a good or service&nbsp;<em>supplied<\/em>&nbsp;divided by the percentage change in price<\/p>\n<strong>total revenue<\/strong> the price of an item multiplied by the number of units sold\n<p class=\"hanging-indent\"><strong>unitary elasticity<\/strong> when the calculated elasticity is equal to 1, indicating that a change in the price of the good or service results in a proportional change in the quantity demanded or supplied<\/p>\n<p class=\"hanging-indent\"><strong>wage elasticity of labor supply<\/strong> the percentage change in hours worked divided by the percentage change in wages<\/p>\n<p class=\"hanging-indent\"><strong>zero elasticity<\/strong> the highly inelastic case of demand or supply in which a percentage change in price, no matter how large, results in zero change in the quantity; <em>also called \u201cperfect inelasticity\u201d<\/em><\/p>","rendered":"<p class=\"hanging-indent\"><strong>constant unitary elasticity<\/strong> when a given percentage change in price leads to an equal percentage change in quantity demanded or supplied<\/p>\n<p class=\"hanging-indent\"><strong>cross-price elasticity of demand<\/strong> the percentage change in the quantity of good A that is demanded as a result of a percentage change in the quantity of good B demanded<\/p>\n<p class=\"hanging-indent\"><strong>elastic demand<\/strong> when the elasticity of demand is greater than 1, indicating a high responsiveness of quantity demanded to changes in price<\/p>\n<p><strong>elasticity<\/strong> the responsiveness of one variable to changes in another variable<\/p>\n<p class=\"hanging-indent\"><strong>elasticity of savings<\/strong> the percentage change in the quantity of savings divided by the percentage change in interest rates<\/p>\n<p class=\"hanging-indent\"><strong>elastic supply<\/strong> when the elasticity of supply is greater than 1, indicating a high responsiveness of quantity supplied to changes in price<\/p>\n<p><strong>growth rate <\/strong>percentage change: the change in quantity divided by the quantity<\/p>\n<p class=\"hanging-indent\"><strong>income elasticity of demand <\/strong>the percentage change in quantity demanded divided by the percentage change in income<\/p>\n<p class=\"hanging-indent\"><strong>inelastic demand <\/strong>when the elasticity of demand is smaller than 1, indicating a low responsiveness of quantity demanded price changes<\/p>\n<p class=\"hanging-indent\"><strong>inelastic supply <\/strong>when the elasticity of supply is smaller than 1, indicating a low responsiveness of quantity supplied to price changes<\/p>\n<p class=\"hanging-indent\"><strong>inferior good <\/strong>a good for which the quantity demanded falls as income rises, and the quantity demanded rises as income falls; income elasticity of demand for an inferior good is negative<\/p>\n<p class=\"hanging-indent\"><strong>infinite elasticity<\/strong> the extremely elastic situation of demand or supply in which the quantity changes by an infinite amount in response to any change in price; <em>also called \u201cperfect elasticity\u201d<\/em><\/p>\n<p class=\"hanging-indent\"><strong>normal good <\/strong>a good for which the quantity demanded rises as income rises, and the quantity demanded falls as income falls; income elasticity of demand for a normal good is positive<\/p>\n<p class=\"hanging-indent\"><strong>price elasticity <\/strong>the relationship between the percent change in price resulting in a corresponding percentage change in the quantity demanded or supplied<\/p>\n<p class=\"hanging-indent\"><strong>price elasticity of demand<\/strong> percentage change in the quantity of a good or service&nbsp;<em>demanded<\/em> divided by the percentage change in price<\/p>\n<p class=\"hanging-indent\"><strong>price elasticity of supply<\/strong> percentage change in the quantity of a good or service&nbsp;<em>supplied<\/em>&nbsp;divided by the percentage change in price<\/p>\n<p><strong>total revenue<\/strong> the price of an item multiplied by the number of units sold<\/p>\n<p class=\"hanging-indent\"><strong>unitary elasticity<\/strong> when the calculated elasticity is equal to 1, indicating that a change in the price of the good or service results in a proportional change in the quantity demanded or supplied<\/p>\n<p class=\"hanging-indent\"><strong>wage elasticity of labor supply<\/strong> the percentage change in hours worked divided by the percentage change in wages<\/p>\n<p class=\"hanging-indent\"><strong>zero elasticity<\/strong> the highly inelastic case of demand or supply in which a percentage change in price, no matter how large, results in zero change in the quantity; <em>also called \u201cperfect inelasticity\u201d<\/em><\/p>\n","protected":false},"author":32,"menu_order":19,"template":"","meta":{"pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-213","chapter","type-chapter","status-publish","hentry"],"part":176,"_links":{"self":[{"href":"https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/wp-json\/pressbooks\/v2\/chapters\/213","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/wp-json\/wp\/v2\/users\/32"}],"version-history":[{"count":1,"href":"https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/wp-json\/pressbooks\/v2\/chapters\/213\/revisions"}],"predecessor-version":[{"id":214,"href":"https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/wp-json\/pressbooks\/v2\/chapters\/213\/revisions\/214"}],"part":[{"href":"https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/wp-json\/pressbooks\/v2\/parts\/176"}],"metadata":[{"href":"https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/wp-json\/pressbooks\/v2\/chapters\/213\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/wp-json\/wp\/v2\/media?parent=213"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/wp-json\/pressbooks\/v2\/chapter-type?post=213"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/wp-json\/wp\/v2\/contributor?post=213"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/wp-json\/wp\/v2\/license?post=213"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}