CHAPTER 6
Elasticity: a measure of responsiveness or sensitivity. When two variables are related, one often wants to know how
sensitive or responsive the dependent variable is to changes in the independent variable
Price elasticity of demand: the responsiveness of a quantity of a product that is demanded to changes in the price of
the product
Categories of price elasticity of demand:
Elasticity: a measure of responsiveness or sensitivity. When two variables are related, one often wants to know how
sensitive or responsive the dependent variable is to changes in the independent variable
Price elasticity of demand: the responsiveness of a quantity of a product that is demanded to changes in the price of
the product
Categories of price elasticity of demand: