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Elastic offer curve |
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Elastic offer curveAn offer curve along which import demand is always elastic. It is therefore not backward bending. Contrasts with inelastic offer curve.Similar MatchesIncome inelasticIncome inelasticHaving an income elasticity less than one. Constant elasticity of substitution functionConstant elasticity of substitution functionSee CES function Inelastic offer curveInelastic offer curveAn offer curve with inelastic demand for imports. That inelasticity implies that exports decline as imports increase, and it therefore means that the offer curve is backward bending. Strictly speaking, the natural definition of an offer curve's elasticity would be negative in this case, not just less than one, but that definition is seldom used. Elasticity of demand for importsElasticity of demand for importsThis is normally the price elasticity of demand for imports of a country, either for a single industry or for the aggregate of all imports. The latter plays a critical role in determining how the country's balance of trade responds to the exchange rate. See Marshall-Lerner condition. Price inelasticPrice inelasticHaving a price elasticity of less than one (in absolute value). Further SuggestionsInelasticElasticity Supply elasticity Import elasticity Point elasticity Import demand elasticity Elasticities approach Cross elasticity Elasticity of substitution Elastic Price elasticities Income elastic Unit elastic Demand elasticity Price elastic Price elasticity Arc elasticity Perfectly elastic Income elasticity Armington elasticity Elasticity of demand for exports |
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