Price Elasticity Of Demand

What does it Mean? A measure of the responsiveness of the quantity demanded of a good to a change in its price. It is calculated as:
Investopedia Says... If a small change in price is accompanied by a large change in quantity demanded, the product is said to be elastic (or responsive to price changes). The opposite also applies, a product is inelastic if a large change in price is accompanied by a small amount of change in demand.

Terms Related Links

Cross Elasticity Of Demand
Economics
Elastic
Income Elasticity Of Demand
Inelastic
Pricing Power
Quantity Demanded
Tax Incidence
Total Revenue Test

Terms Related Links
Economics Basics - Learn economics principles such as the relationship of supply and demand, elasticity, utility, and more!



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