Differences

This shows you the differences between two versions of the page.

--- en:types-of-elasticity [2015/07/28 10:12]
federico Se creó la traducción de la página
+++ en:types-of-elasticity [2015/08/06 15:48] (current)
federico
@@ Line 1: / Line 1: @@
 ====== Types of Elasticity ======
+The elasticity is the relative change of the value of a function in relation to the relative change on the value of an input.
+In economics, supply and demand functions have several inputs: the price of the good, the price of other goods and the income.
+When we calculate the elasticity of demand taking the price of the good that we are analyzing into account, we are calculating the **[[price elasticity of demand]]**.
+When we take the price of other goods into account, we are calculating the **[[cross elasticity of demand]]**.
+When we measure the change in the demand of a good, when the income changes, we calculate the **[[income elasticity of demand]]**.
+The value of the elasticity can be:
+  * Less than -1 (-∞ < e < -1) : we say that this part of the demand is relatively elastic.
+  * Between -1 and 0 (-1 < e < 0): inelastic.
+  * -∞ : perfect elastic.
+  * 0 : perfect inelastic.
+  * -1 : unit elastic. This point of the demand function has an unitary elasticity.