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Income elasticity |
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Income elasticityNormally the income elasticity of demand; that is, the elasticity of demand with respect to income.Similar MatchesDemand elasticityDemand elasticityNormally the price elasticity of demand. References to other elasticities of demand, such as the income elasticity are normally explicit. See import demand elasticity. Arc elasticityArc elasticitySee elasticity Elasticity of substitutionElasticity of substitutionThe elasticity of the ratio of two inputs to a production (or utility) function with respect to the ratio of their marginal products (or utilities). With competitive demands, this is also the elasticity with respect to their price ratio. For example, with factors L,K and factor prices w,r, the elasticity of substitution of a production function F(K,L) is s = (wL/rK)d(K/L)/d(w/r). Price elasticityPrice elasticityThe elasticity of supply or demand with respect to price. ElasticityElasticityA 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). Further SuggestionsSupply elasticityArmington elasticity Import demand elasticity Cross elasticity Point elasticity Constant elasticity of substitution function Elasticity of demand for imports Import elasticity Elasticity of demand for exports |
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