elasticity of demand: translation
The degree of buyers' responsiveness to price changes. Elasticity is measured as the percent change in quantity divided by the percent change in price. A large value (greater than 1) of elasticity indicates sensitivity of demand to price, e.g., luxury goods, where a rise in price causes a decrease in demand. Goods with a small value of elasticity (less than 1) have a demand that is insensitive to price, e.g., food, where a rise in price has little or no effect on the quantity demanded by buyers. Bloomberg Financial Dictionary
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elasticity of demand elasˌticity of deˈmand also ˌprice elasˌticity (of deˈmand) noun [uncountable]
ECONOMICS the degree to which a change in the price of something leads to a change in the amount of it that is sold or that could be sold if available:
• Economists may have over-estimated the elasticity of demand for electricity.
ˌincome elasˌticity of deˈmand ECONOMICS
the degree to which a change in people's incomes leads to a change in the amount of something that is sold or that could be sold if available:
• a high UK income elasticity of demand for imports, compared with a much lower world income elasticity of demand for UK exports
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elasticity of demand UK US noun [U] (also price elasticity of demand)
► ECONOMICS »
The report explains how the elasticity of demand and the nature of production influence the extent to which profits are affected by changes in exchange rates.
→ See also INCOME ELASTICITY OF DEMAND(Cf.↑income elasticity of demand)