{"id":5962,"date":"2016-07-19T18:00:34","date_gmt":"2016-07-19T18:00:34","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/macroeconomics\/?post_type=chapter&#038;p=5962"},"modified":"2016-07-19T18:00:34","modified_gmt":"2016-07-19T18:00:34","slug":"glossary-elasticity","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/suny-macroeconomics\/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\u00a0<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\u00a0<em>supplied<\/em>\u00a0divided 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\u00a0<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\u00a0<em>supplied<\/em>\u00a0divided 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\n\t\t\t <section class=\"citations-section\" role=\"contentinfo\">\n\t\t\t <h3>Candela Citations<\/h3>\n\t\t\t\t\t <div>\n\t\t\t\t\t\t <div id=\"citation-list-5962\">\n\t\t\t\t\t\t\t <div class=\"licensing\"><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Original<\/div><ul class=\"citation-list\"><li>Revision and adaptation. <strong>Provided by<\/strong>: Lumen Learning. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><\/ul><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Shared previously<\/div><ul class=\"citation-list\"><li>Elasticity Glossary, Principles of Microeconomics . <strong>Authored by<\/strong>: OpenStax College. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"http:\/\/cnx.org\/contents\/ea2f225e-6063-41ca-bcd8-36482e15ef65@10.31:24\/Microeconomics\">http:\/\/cnx.org\/contents\/ea2f225e-6063-41ca-bcd8-36482e15ef65@10.31:24\/Microeconomics<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em>. <strong>License Terms<\/strong>: Download for free at http:\/\/cnx.org\/content\/col11627\/latest<\/li><\/ul><\/div>\n\t\t\t\t\t\t <\/div>\n\t\t\t\t\t <\/div>\n\t\t\t <\/section>","protected":false},"author":18,"menu_order":20,"template":"","meta":{"_candela_citation":"[{\"type\":\"cc\",\"description\":\"Elasticity Glossary, Principles of Microeconomics \",\"author\":\"OpenStax College\",\"organization\":\"\",\"url\":\"http:\/\/cnx.org\/contents\/ea2f225e-6063-41ca-bcd8-36482e15ef65@10.31:24\/Microeconomics\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"Download for free at http:\/\/cnx.org\/content\/col11627\/latest\"},{\"type\":\"original\",\"description\":\"Revision and adaptation\",\"author\":\"\",\"organization\":\"Lumen Learning\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"}]","CANDELA_OUTCOMES_GUID":"","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-5962","chapter","type-chapter","status-publish","hentry"],"part":5918,"_links":{"self":[{"href":"https:\/\/courses.lumenlearning.com\/suny-macroeconomics\/wp-json\/pressbooks\/v2\/chapters\/5962","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/courses.lumenlearning.com\/suny-macroeconomics\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/courses.lumenlearning.com\/suny-macroeconomics\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/suny-macroeconomics\/wp-json\/wp\/v2\/users\/18"}],"version-history":[{"count":1,"href":"https:\/\/courses.lumenlearning.com\/suny-macroeconomics\/wp-json\/pressbooks\/v2\/chapters\/5962\/revisions"}],"predecessor-version":[{"id":5965,"href":"https:\/\/courses.lumenlearning.com\/suny-macroeconomics\/wp-json\/pressbooks\/v2\/chapters\/5962\/revisions\/5965"}],"part":[{"href":"https:\/\/courses.lumenlearning.com\/suny-macroeconomics\/wp-json\/pressbooks\/v2\/parts\/5918"}],"metadata":[{"href":"https:\/\/courses.lumenlearning.com\/suny-macroeconomics\/wp-json\/pressbooks\/v2\/chapters\/5962\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/courses.lumenlearning.com\/suny-macroeconomics\/wp-json\/wp\/v2\/media?parent=5962"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/suny-macroeconomics\/wp-json\/pressbooks\/v2\/chapter-type?post=5962"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/suny-macroeconomics\/wp-json\/wp\/v2\/contributor?post=5962"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/suny-macroeconomics\/wp-json\/wp\/v2\/license?post=5962"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}