Elasticity of demand refers to the degree of responsiveness of the quantity demanded of a good or service to changes in its price.
Inelastic demand means that the quantity demanded of a good or service is not significantly affected by changes in its price. In other words, demand remains relatively stable even if the price changes.
Elastic demand means that the quantity demanded of a good or service is highly responsive to changes in its price. If the price increases, the quantity demanded decreases significantly, and if the price decreases, the quantity demanded increases significantly.
Unitary elastic demand refers to a situation where the percentage change in the quantity demanded is equal to the percentage change in price. In other words, the demand is neither inelastic nor elastic.
Total revenue is the total amount of money received from the sale of a good or service. It is calculated by multiplying the price of the good or service by the quantity sold.
Normal goods are goods for which demand increases as consumer income increases. These goods are considered to be necessities or luxury goods that people tend to buy more of when they have higher incomes.
Inferior goods are goods for which demand decreases as consumer income increases. These goods are typically seen as lower-quality or less desirable options, and people may switch to better alternatives when they can afford them.
elasticity of demand
inelastic
elastic
unitary elastic
total revenue
normal good
inferior good
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