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The rate (i.e. regression line) at which the animal decreases its acquisition or consumption of a resource as the cost increases is known as the elasticity of demand.A steep slope of decreasing access indicates a relatively low motivation for a resource, sometimes called 'high elasticity'; a shallow slope indicates relatively high motivation for a resource, sometimes called 'low elasticity ...
An example in microeconomics is the constant elasticity demand function, in which p is the price of a product and D(p) is the resulting quantity demanded by consumers.For most goods the elasticity r (the responsiveness of quantity demanded to price) is negative, so it can be convenient to write the constant elasticity demand function with a negative sign on the exponent, in order for the ...
For example, if the price elasticity of the demand of a good is −2, then a 10% increase in price will cause the quantity demanded to fall by 20%. Elasticity in economics provides an understanding of changes in the behavior of the buyers and sellers with price changes.
The above measure of elasticity is sometimes referred to as the own-price elasticity of demand for a good, i.e., the elasticity of demand with respect to the good's own price, in order to distinguish it from the elasticity of demand for that good with respect to the change in the price of some other good, i.e., an independent, complementary, or ...
Elasticity (economics), a general term for a ratio of change. For more specific economic forms of elasticity, see: Cross elasticity of demand; Elasticity of substitution; Frisch elasticity of labor supply; Income elasticity of demand; Output elasticity; Price elasticity of demand; Price elasticity of supply; Yield elasticity of bond value
The elasticity of demand follows the law of demand and its definition. However, there are goods and specific situations that defy the law of demand. Generally, the amount demanded of a good increases with a decrease in price of the good and vice versa.
The price elasticity of demand is a measure of the sensitivity of the quantity variable, Q, to changes in the price variable, P. It shows the percent by which the quantity demanded will change as a result of a given percentage change in the price. Thus, a demand elasticity of -2 says that the quantity demanded will fall 2% if the price rises 1%.
An example of semi-elasticity is modified duration in bond trading. The opposite definition is sometimes used in the literature. That is, the term "semi-elasticity" is also sometimes used for the change (not percentage-wise) in f(x) in terms of a percentage change in x [9] which would be