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Elastic |
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ElasticHaving an elasticity greater than one. For a price elasticity of demand, this means that expenditure rises as price falls. For an income elasticity it means that expenditure share rises with income, a superior good. Contrasts with inelastic and unit elastic. Elastic demand for either exports or imports is sufficient to satisfy the Marshall-Lerner condition.Similar MatchesElasticityElasticityA measure of responsiveness of one economic variable to another -- usually the responsiveness of quantity to price along a supply or demand curve -- comparing percentage changes (%D) or changes in logarithms (d ln). The arc elasticity of x with respect to y is e = %Dx/%Dy. The point elasticity is e = d lnx/d lny = (y/x)(dx/dy). Income inelasticIncome inelasticHaving an income elasticity less than one. Import elasticityImport elasticityUsually means the import demand elasticity. Armington elasticityArmington elasticityThe elasticity of substitution between products of different countries. Elasticities approachElasticities approach1. The method of analyzing the determination of the balance of trade, especially due to a devaluation, that focuses on the price elasticities of exports and imports. According to this approach, the effect depends criticalliy on the Marshall-Lerner Condition. 2. The explanation of exchange rates using supply and demand curves. Further SuggestionsConstant elasticity of substitution functionElastic offer curve Inelastic Inelastic offer curve Income elastic Supply elasticity Price elasticity Cross elasticity Elasticity of demand for imports Income elasticity Price elasticities Price inelastic Demand elasticity Perfectly elastic Price elastic Unit elastic Point elasticity Arc elasticity Elasticity of demand for exports Elasticity of substitution Import demand elasticity |
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