Price elasticity Flashcards
How do you calculate the price elasticity of demand?
What is perfect inelasticity and perfect elasticity of demand?
Zero elasticity, or perfect inelasticity, is the extreme case where a percentage change in price—no matter how large—results in zero change in quantity.
Infinite elasticity, or perfect elasticity, is the extreme case where either the quantity demanded or supplied changes by an infinite amount in response to any change in price.
What is the constant unit of elasticity?
Constant unitary elasticity in either a supply or demand curve means a price change of 1% results in a quantity change of 1%.
How does total revenue relates to elasticity?
How does cross elasticity of demand work?
How does elasticity of supply work?
Why can elasticity cause strange percent changes?
