4.3 Vocabulary - Elastic-quantity demanded changes...

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4.3 Vocabulary Elasticity - a measure of responsiveness that tells us how a dependent variable such as quantity responds to change in an independent variable such as quantity responds to change in an independent variable such as price Demand Elasticity - the extent to which a change in price causes a change in the quantity demanded - will help analyze these issues
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Unformatted text preview: Elastic-quantity demanded changes significantly as price changes anything more than one on the graph Inelastic-a given change in price causes a relatively smaller change in the quantity demanded anything less than 1 Unit Elastic-a given change in price causes a proportional change in quantity demanded...
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This note was uploaded on 02/27/2012 for the course ECON 101 taught by Professor Burkhauser during the Spring '08 term at Cornell University (Engineering School).

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