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Elasticity
Elasticity often refers to: *Elasticity (physics), continuum mechanics of bodies that deform reversibly under stress Elasticity may also refer to: Information technology * Elasticity (data store), the flexibility of the data model and the clustering * Elasticity (cloud computing), a defining feature of cloud computing Economics Elasticity (economics), a general term for a ratio of change. For more specific economic forms of elasticity, see: * Beta (finance) * Cross elasticity of demand *Elasticity of substitution *Frisch elasticity of labor supply *Income elasticity of demand *Output elasticity *Price elasticity of demand *Price elasticity of supply *Yield elasticity of bond value Mathematics *Elasticity of a function, a mathematical definition of point elasticity *Arc elasticity Other uses * ''Elasticity'', a 2021 EP by Serj Tankian * Elasticity coefficient The rate of a chemical reaction is influenced by many different factors, such as temperature, pH, reactant, ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Price Elasticity Of Demand
A good's price elasticity of demand (E_d, PED) is a measure of how sensitive the quantity demanded is to its price. When the price rises, quantity demanded falls for almost any good, but it falls more for some than for others. The price elasticity gives the percentage change in quantity demanded when there is a one percent increase in price, holding everything else constant. If the elasticity is −2, that means a one percent price rise leads to a two percent decline in quantity demanded. Other elasticities measure how the quantity demanded changes with other variables (e.g. the income elasticity of demand for consumer income changes). Price elasticities are negative except in special cases. If a good is said to have an elasticity of 2, it almost always means that the good has an elasticity of −2 according to the formal definition. The phrase "more elastic" means that a good's elasticity has greater magnitude, ignoring the sign. Veblen and Giffen goods are two classes of good ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Elasticity (economics)
In economics, elasticity measures the percentage change of one economic variable in response to a percentage change in another. If the price elasticity of the demand of something is -2, a 10% increase in price causes the demand quantity to fall by 20%. Introduction Elasticity is an important concept in neoclassical economic theory, and enables in the understanding of various economic concepts, such as the incidence of indirect taxation, marginal concepts relating to the theory of the firm, distribution of wealth, and different types of goods relating to the theory of consumer choice. An understanding of elasticity is also important when discussing welfare distribution, in particular consumer surplus, producer surplus, or government surplus. Elasticity is present throughout many economic theories, with the concept of elasticity appearing in several main indicators. These include price elasticity of demand, price elasticity of supply, income elasticity of demand, elastici ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Cross Elasticity Of Demand
In economics, the cross elasticity of demand or cross-price elasticity of demand measures the percentage change of the quantity demanded for a good to the percentage change in the price of another good, ceteris paribus. In real life, the quantity demanded of good is dependent on not only its own price (Price elasticity of demand) but also the price of other "related" products. \text = \frac The concept is used to identify the relationship between two goods, they can be: * Complements * Substitutes * Unrelated A negative cross elasticity denotes two products that are complements, while a positive cross elasticity denotes two products are substitutes. If products A and B are complements, an increase in the price of B leads to a decrease in the quantity demanded for A, as A is used in conjunction with B. Equivalently, if the price of product B decreases, the demand curve for product A shifts to the right reflecting an increase in A's demand, resulting in a ''negative'' value for the ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Elasticity (physics)
In physics and materials science, elasticity is the ability of a body to resist a distorting influence and to return to its original size and shape when that influence or force is removed. Solid objects will deform when adequate loads are applied to them; if the material is elastic, the object will return to its initial shape and size after removal. This is in contrast to ''plasticity'', in which the object fails to do so and instead remains in its deformed state. The physical reasons for elastic behavior can be quite different for different materials. In metals, the atomic lattice changes size and shape when forces are applied (energy is added to the system). When forces are removed, the lattice goes back to the original lower energy state. For rubbers and other polymers, elasticity is caused by the stretching of polymer chains when forces are applied. Hooke's law states that the force required to deform elastic objects should be directly proportional to the distance of ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Elasticity Coefficient
The rate of a chemical reaction is influenced by many different factors, such as temperature, pH, reactant, and product concentrations and other effectors. The degree to which these factors change the reaction rate is described by the elasticity coefficient. This coefficient is defined as follows: : \varepsilon_^v=\left(\frac \frac\right)_=\frac \approx \frac where v denotes the reaction rate and s denotes the substrate concentration. Be aware that the notation will use lowercase roman letters, such as s, to indicate concentrations. The partial derivative in the definition indicates that the elasticity is measured with respect to changes in a factor S while keeping all other factors constant. The most common factors include substrates, products, and effectors. The scaling of the coefficient ensures that it is dimensionless and independent of the units used to measure the reaction rate and magnitude of the factor. The elasticity coefficient is an integral part of metabolic con ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Income Elasticity Of Demand
In economics, the income elasticity of demand is the responsivenesses of the quantity demanded for a good to a change in consumer income. It is measured as the ratio of the percentage change in quantity demanded to the percentage change in income. If a 10% increase in Mr. Ruskin Smith's income causes him to buy 20% more bacon, Smith's income elasticity of demand for bacon is 20%/10% = 2. * Mathematical definition :\epsilon_d = \frac The point elasticity version, which defines it as an instantaneous rate of change of quantity demanded as income changes, is as follows. For a given Marshallian demand function Q(I,\vec) , with arguments income and a vector of prices of all goods, :\epsilon_d = \frac\frac This can be rewritten in the form :\epsilon_d = \frac For discrete changes the elasticity is (using the arc elasticity) :\epsilon_d= \times =\times , where subscripts 1 and 2 refer to values before and after the change. Interpretation The most commonly used elastic ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Price Elasticity Of Supply
The price elasticity of supply (PES or Es) is a measure used in economics to show the responsiveness, or elasticity, of the quantity supplied of a good or service to a change in its price. The elasticity is represented in numerical form, and is defined as the percentage change in the quantity supplied divided by the percentage change in price. When the elasticity is less than one, the supply of the good can be described as ''inelastic''; when it is greater than one, the supply can be described as ''elastic''.Png, Ivan (1999). pp. 129–32. An elasticity of zero indicates that quantity supplied does not respond to a price change: the good is "fixed" in supply. Such goods often have no labor component or are not produced, limiting the short run prospects of expansion. If the elasticity is exactly one, the good is said to be ''unit-elastic''. The quantity of goods supplied can, in the short term, be different from the amount produced, as manufacturers will have stocks which they ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Elasticity Of Substitution
Elasticity of substitution is the ratio of percentage change in capital-labour ratio with the percentage change in Marginal Rate of Technical Substitution. In a competitive market, it measures the percentage change in the two inputs used in response to a percentage change in their prices.Bergstrom, Ted (2015)''Lecture Notes on Elasticity of Substitution'' p. 5. Viewed June 17, 2016. It gives a measure of the curvature of an isoquant, and thus, the substitutability between inputs (or goods), i.e. how easy it is to substitute one input (or good) for the other. History of the concept John Hicks introduced the concept in 1932. Joan Robinson independently discovered it in 1933 using a mathematical formulation that was equivalent to Hicks's, though that was not implemented at the time.Chirinko, Robert (2006)''Sigma: The Long and Short of It'' '' Journal of Macroeconomics. '' 2: 671-86. Definition The general definition of the elasticity of X with respect to Y is E^X_Y = \frac, which redu ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Elasticity Of A Function
In mathematics, the elasticity or point elasticity of a positive differentiable function ''f'' of a positive variable (positive input, positive output) at point ''a'' is defined as :Ef(a) = \fracf'(a) :=\lim_\frac\frac=\lim_\frac\frac=\lim_\frac\approx \frac or equivalently :Ef(x) = \frac. It is thus the ratio of the relative (percentage) change in the function's output f(x) with respect to the relative change in its input x, for infinitesimal changes from a point (a, f(a)). Equivalently, it is the ratio of the infinitesimal change of the logarithm of a function with respect to the infinitesimal change of the logarithm of the argument. Generalisations to multi-input-multi-output cases also exist in the literature. The elasticity of a function is a constant \alpha if and only if the function has the form f(x) = C x ^ \alpha for a constant C>0. The elasticity at a point is the limit of the arc elasticity between two points as the separation between those two points approaches zero. ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Frisch Elasticity Of Labor Supply
The Frisch elasticity of labor supply captures the elasticity of hours worked to the wage rate, given a constant marginal utility of wealth. Marginal utility is constant for risk-neutral individuals according to microeconomics. In other words, the Frisch elasticity measures the substitution effect of a change in the wage rate on labor supply. This concept was proposed by the economist Ragnar Frisch Ragnar Anton Kittil Frisch (3 March 1895 – 31 January 1973) was an influential Norwegian economist known for being one of the major contributors to establishing economics as a quantitative and statistically informed science in the early 20th ce ... after whom the elasticity of labor supply is named. The value of the Frisch elasticity is interpreted as willingness to work when wage is changed. The higher the Frisch elasticity, the more willing are people to work if the wage increases. The Frisch elasticity can be also referred to as “λ-constant” elasticity, where λ denotes mar ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Arc Elasticity
In mathematics and economics, the arc elasticity is the elasticity of one variable with respect to another between two given points. It is the ratio of the percentage change of one of the variables between the two points to the percentage change of the other variable. It contrasts with the ''point elasticity'', which is the limit of the arc elasticity as the distance between the two points approaches zero and which hence is defined at a single point rather than for a pair of points. Like the point elasticity, the arc elasticity can vary in value depending on the starting point. For example, the arc elasticity of supply of a product with respect to the product's price could be large when the starting and ending prices are both low, but could be small when they are both high.20%/10%=2 Formula The ''y'' arc elasticity of ''x'' is defined as: :E_ = \frac where the percentage change in going from point 1 to point 2 is usually calculated relative to the midpoint: :\% \mbox x = \frac; ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Output Elasticity
In economics, output elasticity is the percentage change of output (GDP Gross domestic product (GDP) is a monetary measure of the market value of all the final goods and services produced and sold (not resold) in a specific time period by countries. Due to its complex and subjective nature this measure is ofte ... or production of a single firm) divided by the percentage change of an input. It is sometimes called ''partial output elasticity'' to clarify that it refers to the change of only one input. As with every elasticity, this measure is defined locally, i.e. defined at a point. If the production function contains only one input, then the output elasticity is also an indicator of the degree of returns to scale. If the coefficient of output elasticity is greater than 1, then production is experiencing increasing returns to scale. If the coefficient is less than 1, then production is experiencing decreasing returns to scale. If the coefficient is 1, then production is ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
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