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Unformatted text preview: Income-Elastic: If the income elasticity of demand for that good is greater than one. Income-Inelastic: If the income elasticity of a demand for that good is less than one. Price Elasticity of Supply: is a measure of the responsiveness of the quantity of a good supplied to the price of that good. It is the ratio of the percent change in the quantity supplied to the percent change in the price as we move along the supply curve. Perfectly Inelastic Supply: When the price elasticity of supply is zero, so that the changes in the price of the good have no effect on the quantity supplied. Perfectly Elastic Supply: when even a tiny increase or reduction in the price will lead to very large changes in the quantity supplied, so that the price elasticity of supply is infinite....
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This note was uploaded on 04/07/2008 for the course DSC 199 taught by Professor Daley during the Fall '06 term at University of Oregon.
- Fall '06