Demand in which quantity demanded does not respond at all to a change in price.

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	Economics 14/e   McConnell
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Chapter 20 - Demand And Supply: Elasticities And Applications

price elasticity of demand

The ratio of the percentage change in quantity demanded of a product or resource to the percentage change in its price; a measure of the responsiveness of buyers to a change in the price of a product or resource.

elastic demand

Product or resource demand whose price elasticity is greater than 1; means the resulting change in quantity demanded is greater than the percentage change in price.

inelastic demand

Product or resource demand for which the price elasticity coefficient is less than 1; means the resulting percentage change in quantity demanded is less than the percentage change in price.

unit elasticity

Demand or supply for which the elasticity coefficient is equal to 1; means the percentage change in the quantity demanded or supplied is equal to the percentage change in price.

perfectly inelastic demand

Product or resource demand in which price can be of any amount at a particular quantity of the product or resource demanded; quantity demanded does not respond to a change in price; graphs as a vertical demand curve.

perfectly elastic demand

Product or resource demand in which quantity demanded can be of any amount at a particular price; graphs as a horizontal demand curve

total revenue

The total number of dollars received by a firm (or firms) from the sale of a product; equal to the total expenditures for the product produced by the firm (or firms); equal to the quantity sold (demanded) multiplied by the price at which it is sold.

total-revenue test

A test to determine elasticity of demand between any two prices: Demand is elastic if total revenue moves in the opposite direction as price; it is inelastic when it moves in the same direction as price; and it is of unitary elasticity when it does not change when price changes.

price elasticity of supply

The ratio of the percentage change in quantity supplied of a product or resource to the percentage change in its price; the responsiveness of producers to a change in the price of a product or resource.

market period

A period in which producers of a product are unable to change the quantity produced in response to a change in its price; in which there is a perfectly inelastic supply.

short run

(1) In microeconomics a period of time in which producers are able to change the quantity of some but not all of the resources they employ; a period in which some resources (usually plant) are fixed and some are variable. (2) In macroeconomics a period in which nominal wages and other input prices do not change in response to a change in the price level.

long run

(1) In microeconomics a period of time long enough to enable producers of a product to change the quantities of all the resources they employ; period in
which all resources and costs are variable and no resources or costs are fixed. (2) In macroeconomics a period sufficiently long for nominal wages and other input prices to change in response to a change in the nation's price level.

cross elasticity of demand

The ratio of the percentage change in quantity demanded of one good to the percentage change in the price of some other good. A positive coefficient indicates the two products are substitute goods; a negative coefficient indicates they are complementary goods.

income elasticity of demand

The ratio of the percentage change in the quantity demanded of a good to a percentage change in consumer income; measures the responsiveness of consumer purchases to income changes.

price ceiling

A legally established maximum price for a good or service.

price floor

A legally determined price above the equilibrium price.

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When the quantity demanded does not respond at all to a change in price?

When the quantity demanded drops to zero at the slightest increase in price the demand curve is?

What kind of demand is not sensitive to a change in price?

In what type of demand elasticity does quantity demanded not change at all in response to a change in price?