[{"data":1,"prerenderedAt":291},["ShallowReactive",2],{"term:elasticity":3},{"term":4,"related":282},{"id":5,"title":6,"body":7,"category":265,"description":266,"extension":267,"faq":268,"meta":269,"navigation":270,"path":271,"related":272,"seo":275,"stem":276,"takeaways":277,"__hash__":281},"terms\u002Fterms\u002Felasticity.md","Price Elasticity of Demand",{"type":8,"value":9,"toc":258},"minimark",[10,15,19,22,26,251,255],[11,12,14],"h2",{"id":13},"understanding-price-elasticity-of-demand","Understanding Price Elasticity of Demand",[16,17,18],"p",{},"Price elasticity of demand compares the percentage change in quantity demanded with the percentage change in price. Demand is elastic when buyers respond strongly and inelastic when they barely respond.",[16,20,21],{},"Goods with close substitutes or that are luxuries tend to be elastic; necessities with few substitutes, like medicine or gasoline in the short run, tend to be inelastic.",[11,23,25],{"id":24},"formula","Formula",[27,28,31],"span",{"className":29},[30],"katex-display",[27,32,35,79],{"className":33},[34],"katex",[27,36,39],{"className":37},[38],"katex-mathml",[40,41,44],"math",{"xmlns":42,"display":43},"http:\u002F\u002Fwww.w3.org\u002F1998\u002FMath\u002FMathML","block",[45,46,47,74],"semantics",{},[48,49,50,60,64],"mrow",{},[51,52,53,57],"msub",{},[54,55,56],"mi",{},"E",[54,58,59],{},"d",[61,62,63],"mo",{},"=",[65,66,67,71],"mfrac",{},[68,69,70],"mtext",{},"Percent change in quantity",[68,72,73],{},"Percent change in price",[75,76,78],"annotation",{"encoding":77},"application\u002Fx-tex","E_d = \\frac{\\text{Percent change in quantity}}{\\text{Percent change in price}}",[27,80,84,164],{"className":81,"ariaHidden":83},[82],"katex-html","true",[27,85,88,93,152,157,161],{"className":86},[87],"base",[27,89],{"className":90,"style":92},[91],"strut","height:0.8333em;vertical-align:-0.15em;",[27,94,97,102],{"className":95},[96],"mord",[27,98,56],{"className":99,"style":101},[96,100],"mathnormal","margin-right:0.0576em;",[27,103,106],{"className":104},[105],"msupsub",[27,107,111,143],{"className":108},[109,110],"vlist-t","vlist-t2",[27,112,115,138],{"className":113},[114],"vlist-r",[27,116,120],{"className":117,"style":119},[118],"vlist","height:0.3361em;",[27,121,123,128],{"style":122},"top:-2.55em;margin-left:-0.0576em;margin-right:0.05em;",[27,124],{"className":125,"style":127},[126],"pstrut","height:2.7em;",[27,129,135],{"className":130},[131,132,133,134],"sizing","reset-size6","size3","mtight",[27,136,59],{"className":137},[96,100,134],[27,139,142],{"className":140},[141],"vlist-s","​",[27,144,146],{"className":145},[114],[27,147,150],{"className":148,"style":149},[118],"height:0.15em;",[27,151],{},[27,153],{"className":154,"style":156},[155],"mspace","margin-right:0.2778em;",[27,158,63],{"className":159},[160],"mrel",[27,162],{"className":163,"style":156},[155],[27,165,167,171],{"className":166},[87],[27,168],{"className":169,"style":170},[91],"height:2.2519em;vertical-align:-0.8804em;",[27,172,174,179,247],{"className":173},[96],[27,175],{"className":176},[177,178],"mopen","nulldelimiter",[27,180,182],{"className":181},[65],[27,183,185,238],{"className":184},[109,110],[27,186,188,235],{"className":187},[114],[27,189,192,209,220],{"className":190,"style":191},[118],"height:1.3714em;",[27,193,195,199],{"style":194},"top:-2.314em;",[27,196],{"className":197,"style":198},[126],"height:3em;",[27,200,202],{"className":201},[96],[27,203,206],{"className":204},[96,205],"text",[27,207,73],{"className":208},[96],[27,210,212,215],{"style":211},"top:-3.23em;",[27,213],{"className":214,"style":198},[126],[27,216],{"className":217,"style":219},[218],"frac-line","border-bottom-width:0.04em;",[27,221,223,226],{"style":222},"top:-3.677em;",[27,224],{"className":225,"style":198},[126],[27,227,229],{"className":228},[96],[27,230,232],{"className":231},[96,205],[27,233,70],{"className":234},[96],[27,236,142],{"className":237},[141],[27,239,241],{"className":240},[114],[27,242,245],{"className":243,"style":244},[118],"height:0.8804em;",[27,246],{},[27,248],{"className":249},[250,178],"mclose",[11,252,254],{"id":253},"example","Example",[16,256,257],{},"If a 10% price rise cuts sales by 20%, elasticity is about −2: demand is elastic, and the price rise lowers total revenue.",{"title":259,"searchDepth":260,"depth":260,"links":261},"",2,[262,263,264],{"id":13,"depth":260,"text":14},{"id":24,"depth":260,"text":25},{"id":253,"depth":260,"text":254},"economy","How strongly the quantity people buy responds to a change in price.","md",[],{},true,"\u002Fterms\u002Felasticity",[273,274],"inflation","opportunity-cost",{"title":6,"description":266},"terms\u002Felasticity",[278,279,280],"Elasticity measures sensitivity of demand to price.","Elastic demand: quantity changes more than price, in percentage terms.","Elasticity helps predict who bears a tax and how revenue changes with price.","8c1VU_CrtnEBWw77GhwUjfoU-kCAfEW5u2pKxSA7E-4",[283,287],{"title":284,"description":285,"path":286},"Inflation","The rate at which the general level of prices rises, eroding purchasing power.","\u002Fterms\u002Finflation",{"title":288,"description":289,"path":290},"Opportunity Cost","The value of the next-best alternative you give up when you make a choice.","\u002Fterms\u002Fopportunity-cost",1793374005640]