Home >  Blossary: Microeconomic Terms  >  Term: price elasticity of demand
price elasticity of demand

(Ed)A function of demand for which as the price increases or decreases, the demand of the product changes.

Ed=abs(%change in quantity demanded/%change in price).

inelastic<1.

unit elastic=1.

perfectly inelastic demand=0.

perfectly elastic=infinity.

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  • Μέρος του λόγου: noun
  • Κλάδος/Τομέας: Economy
  • Category: Economics

Microeconomics

Category: Education

Total terms: 20

Δημιουργός

  • Timmwilson
  • (Beijing, China)

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