elasticity of demand
definition: measure of how consumers will react to a change in prices.
- Will a change in price cause a large or a small change in quantity demanded?
connected key terms: calculating elasticity | unitary | elastic | inelastic


everyday examples
unitary equal to 1 or ( = 1 ) is no change
elastcit greater than 1 or ( > 1 ) is a big change
inelastic less than 1 or ( < 1 ) is a small change

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