elasticity of demand

USAGE SUMMARY

The phrase "elasticity of demand" is correct and usable in written English. You can use it in discussions about economics, particularly when analyzing how quantity demanded changes in response to price changes. For example, "The elasticity of demand for luxury goods is often higher than for necessities." Alternative expressions include "demand responsiveness" and "price elasticity of demand."

✓ Grammatically correct

News & Media

Science

Academia

Human-verified examples from authoritative sources

Exact Expressions

60 human-written examples

So the short-run elasticity of demand is fairly small.

The New York Times

But various studies have shown that the price elasticity of demand for UK exports is low.

The Guardian - Business

The education department says it has little evidence of the elasticity of demand for courses.

The Guardian

In economics jargon, the cross-price elasticity of demand is small.

The New York Times - Tech

Moreover, Cournot introduced the idea of elasticity of demand, though he did not use that phrase.

Encyclopedia Britannica

In the long run, the best estimate of the price elasticity of demand for auto fuel seems to be -0.7.

The New York Times

Is this something to do with the elasticity of demand (Black Friday shoppers play it safe, November 28)?

The Guardian - Business

I believe airlines also underestimate the elasticity of demand -- in this case the availability of substitutes for cramped, stressful flights.

The New York Times

Facing an unknown elasticity of demand, a high initial price serves as a "refusal" price during the stage of exploration.

Harvard Business Review

Economists call this the income elasticity of demand for labour.But at least marginal tax rates encourage work somewhat.

The Economist

Economists talk about the price elasticity of demand, and we have seen that people don't cut their gas consumption in direct proportion to price increases.

The New York Times

Expert writing Tips

Best practice

When discussing "elasticity of demand", specify the type (price, income, cross-price) to provide clarity and context.

Common error

Avoid using "elasticity" interchangeably with "demand". "Elasticity of demand" refers to the responsiveness of demand, not the demand itself.

Linguistic Context

The phrase "elasticity of demand" functions as a noun phrase, denoting a key concept in economics. It often serves as the subject or object of sentences, describing a specific economic relationship as Ludwig describes.

Expression frequency: Very common

Frequent in

Science

40%

News & Media

30%

Academia

15%

Less common in

Formal & Business

10%

Encyclopedias

3%

Wiki

2%

Ludwig's WRAP-UP

In summary, the phrase "elasticity of demand" is a core economic concept that measures the responsiveness of demand to changes in factors like price, income, and the prices of related goods. As Ludwig AI shows, the phrase is grammatically correct and very commonly used. Understanding the different types of elasticity—price, income, and cross-price—is crucial for making informed decisions in business and policymaking. While the phrase is generally used in formal contexts, such as academic research and economic reports, it also appears frequently in news media. Remember that "elasticity" refers to responsiveness, not demand itself.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

demand elasticity

Reorders the words for brevity, maintaining the core meaning.

demand responsiveness

Focuses on how demand reacts to changes without specifying the cause.

price sensitivity of demand

Emphasizes the impact of price changes on demand.

responsiveness of demand to price

Similar to price sensitivity, but with a slightly different phrasing.

degree of demand elasticity

Highlights the extent to which demand is elastic.

sensitivity of quantity demanded

Emphasizes the quantity aspect of demand's reaction.

how demand reacts to price changes

Simplified description of the concept.

demand's reaction to price fluctuations

Highlights that demand may fluctuate.

consumer demand elasticity

Explicitly mentions consumers and their demand.

market demand elasticity

Focuses on the overall market demand.

FAQs

How is "elasticity of demand" used in economics?

In economics, "elasticity of demand" measures how much the quantity demanded of a good or service changes in response to a change in its price, income, or the price of related goods. It's a key concept for understanding consumer behavior and market dynamics.

What are the different types of "elasticity of demand"?

The main types are price elasticity of demand, which measures the responsiveness of quantity demanded to a change in price; income elasticity of demand, which measures the responsiveness of quantity demanded to a change in consumer income; and cross-price elasticity of demand, which measures the responsiveness of the quantity demanded of one good to a change in the price of another good.

How does "elasticity of demand" affect pricing decisions?

Understanding the "elasticity of demand" for a product can help businesses make informed pricing decisions. If demand is elastic (highly responsive to price changes), a small price increase can lead to a significant decrease in quantity demanded. Conversely, if demand is inelastic (not very responsive to price changes), a business may be able to raise prices without significantly affecting demand.

What's the difference between "elasticity of demand" and "strength of demand"?

"Elasticity of demand" measures the responsiveness of demand to changes in price or other factors. "Strength of demand" refers to the overall level or intensity of consumer desire for a particular good or service at a given price or income level.