Cross Elasticity of Demand The measure of the
responsiveness of demand demanded divided by the
for a certain good to a
change in the price of a
substitute or complement
when other things remain the
same.
Elastic Demand When the percentage change
in the quantity demanded
exceeds the percentage
change in price.
Inelastic Demand When the percentage change
in the quantity demanded is
less than the percentage
change in price.
Unit Elastic When the percentage change
in the quantity demanded
equals the percentage
change in price.
Perfectly Elastic Demand When the quantity demanded
changes by a very large
percentage in response to an
almost zero percentage
change in price.
Perfectly Inelastic Demand When the percentage change
in the quantity demanded is
zero for any percentage
change in the price.
Elastic Supply When the percentage change
in the quantity supplied
exceeds the percentage
change in price.
Inelastic Supply When the percentage change
in the quantity supplied is
less than the percentage
change in price.
Unit Elastic Supply When the percentage change
in the quantity supplied
equals the percentage
%change in quantity
%Change in price of its
substitute or complements.
%change in quantity
demanded divided by
%change in price
%change in quantity
demanded divided by
%change in price
%change in quantity
demanded divided by
%change in price
When there is very little
change in price when quantity
demand increases
dramatically
When demand doesn't
increase but the price does.
%change in quantity supplied
divided by %change in price
%change in quantity supplied
divided by %change in price
%change in quantity supplied
divided by %change in price
 change in price.

Perfectly Elastic Supply When the quantity supplied
changes by a very large
ammount in response to an
almost zero percentage
change in price.
When price doesn’t really
change when the quantity
supplied increases
immensely

Perfectly Inelastic Supply When the percentage change When the quantity supplied
in the quantity supplied is doesn;t change much when
zero for any percentage price increases or decreases.
change in the price.

Income Elasticity of A measure of the How the change of income

Demand responsiveness of the impacts change in demand
demand for a good to a for a good.
change in income when other
things remain the same.

Price Elasticity of Demand A measure of the How the change of quantity

responsiveness of the demanded affects change in
quantity demanded of a good price.
to a change in its price when
all other influences on buyers’
plans remain the same.

Price Elasticity of Supply A measure of the How quantity supplied affects

responsiveness of the change in price
quantity supplied of a good to
a change in its price when all
other influences on sellers’
plans remain the same.

Total Revenue The amount spent on a good
and received by the seller
and equals the price of the
good multiplied by the
quantity of the good sold.
The final amount of how
much the seller has made
after the entirety of the
transaction

Total Revenue Test A method of estimating the
price elasticity of demand by
observing the change in total
revenue that results from a
price change (with all other
influences on the quantity
sold remaining unchanged).
A way to guess the price
elasticity of demand by
looking at the total change in
revenue that occurs when the
price changes.