# ECON Exam 2

 price of elasticity of demand a measure of the responsiveness of the quantity demanded to changes in price elastic demand the price elasticity of demand is greater than one, so the percentage change in quantity exceeds the percentage change in price inelastic demand the price elasticity of demand is less than one so the percentage change in quantity equals the percentage change in price unit elastic demand the price elasticity of demand is one, so the percentage change in quantity equals the percentage change in price perfectly inelastic demand the price elasticity of demand is zero formula for the Price Elasticity of Demand (Ed) Ed= |% change in quantity demanded ÷ % change in price| total revenue the money a firm generates from selling its product income elasticity of demand a measure of the responsiveness of demand to changes in consumer income formula for Income Elasticity of Demand (Et) Et= % change in quantity demanded ÷ % change in income cross-price elasticity of demand a measure of the responsiveness of demand to changes in the price of another good formula for Cross-Price Elasticity of Demand (Exy) Exy= % change in quanitity of X demanded ÷ % change in price Y price elasticity of supply a measure of the responsiveness of the quantity supplied to changes in price formula for Price Elasticity of Supply (Es) Es= % change in quantitiy supplied ÷ % change in price perfectly inelastic supply the price elasticity of supply equals 0 perfectly elastic supply the price elasticity of supply is equal to ∞ AuthorAnonymous ID128281 Card SetECON Exam 2 Descriptionstuff Updated2012-01-17T00:36:20Z Show Answers