Key Concepts
Price elasticity of demand
Inelastic and perfectly inelastic demand
Elastic and perfectly elastic demand
Relationship between demand elasticity and total expenditure
Elasticity of supply
Short-run and long-run responses to shifts in demand and supply
The burden of an excise tax
Consumer price and seller price
Income elasticity of demand
Normal goods and inferior goods
Luxuries and necessities
Cross elasticity of demand
Substitutes and complements