priselasticiteterne

Priselasticiteterne, or price elasticities, is a concept in economics that measures the responsiveness of one economic variable to changes in another. It is a unitless measure, expressed as a percentage, which allows for the comparison of elasticities across different markets and goods. The most common type of price elasticity is price elasticity of demand, which quantifies how much the quantity demanded of a good responds to a change in its price.

Price elasticity of demand is calculated as the percentage change in quantity demanded divided by the percentage change in price. If the resulting elasticity is greater than one, demand is said to be elastic, meaning that consumers are highly responsive to price changes. If the elasticity is less than one, demand is inelastic, indicating that consumers are not very responsive to price changes. An elasticity of one means that demand is unit elastic, where the percentage change in quantity demanded is equal to the percentage change in price.

Other types of price elasticities include price elasticity of supply, which measures how much the quantity supplied of a good responds to a change in its price, and cross-price elasticity, which measures the responsiveness of the demand for a good to changes in the price of another good. These concepts are fundamental to understanding market behavior and are widely used in economic analysis and policy-making.