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Elasticity
the extent to which buyers and sellers respond to a change in market conditions
Price Elasticity of Demand
The responsiveness of the quantity demanded to a change in the price of the product
Income elasticity of demand
The responsiveness of demand to a change in income
Normal goods
Goods for which an increase in income leads to an increase in demand.
Inferior goods
Goods for which an increase in income leads to a fall in demand
Cross Elasticity of Demand
The responsiveness of demand for one product in relation to a change in the price of another.
Substitutes
Competing goods
Complements
Goods for which there is a joint demand
Price Elasticity of Supply
The responsiveness of the quantity supplied to a change in the price of the product
