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Unit elastic |
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Unit elasticHaving an elasticity equal to one. For a price elasticity of demand, this means that expenditure remains constant as price changes. For an income elasticity it means that expenditure share is constant. Homothetic preferences imply unit income elasticities. Contrasts with elastic and inelastic.Similar MatchesCross elasticityCross elasticity1. An elasticity that has been ignored by a student in a problem set. 2. The elasticity of supply or demand for one good or service with respect to the price of another. Supply elasticitySupply elasticityThe elasticity of a supply function, usually 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). Arc elasticityArc elasticitySee elasticity 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 functionElasticity of demand for imports Price elasticity Price elastic Income elasticity Demand elasticity Elasticity of substitution Inelastic offer curve Inelastic Import demand elasticity Price inelastic Income elastic Import elasticity Income inelastic Elastic offer curve Point elasticity Elastic Armington elasticity Perfectly elastic Elasticity of demand for exports Price elasticities |
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