**substitution**- It represents the elasticity of substitution between products of different countries, and is based on the assumption made by Paul Armington in 1969 that products traded internationally are differentiated by country of origin. (wikipedia.org)
- Frequently used elasticities include price elasticity of demand, price elasticity of supply, income elasticity of demand, elasticity of substitution between factors of production and elasticity of intertemporal substitution. (wikipedia.org)
- Elasticity of substitution is the elasticity of the ratio of two inputs to a production (or utility) function with respect to the ratio of their marginal products (or utilities). (wikipedia.org)
- The inverse of elasticity of substitution is elasticity of complementarity. (wikipedia.org)
- The elasticity of substitution also governs how the relative expenditure on goods or factor inputs changes as relative prices change. (wikipedia.org)
- Which of these effects dominates depends on the magnitude of the elasticity of substitution. (wikipedia.org)
- When the elasticity of substitution is less than one, the first effect dominates: relative demand for c 2 {\displaystyle c_{2}} falls, but by proportionally less than the rise in its relative price, so that relative expenditure rises. (wikipedia.org)
- Conversely, when the elasticity of substitution is greater than one, the second effect dominates: the reduction in relative quantity exceeds the increase in relative price, so that relative expenditure on c 2 {\displaystyle c_{2}} falls. (wikipedia.org)
- Note that when the elasticity of substitution is exactly one (as in the Cobb-Douglas case), expenditure on c 2 {\displaystyle c_{2}} relative to c 1 {\displaystyle c_{1}} is independent of the relative prices. (wikipedia.org)
- Lecture Notes on Elasticity of Substitution, p. 5. (wikipedia.org)
- The Elasticity of Substitution, Gonçalo L. Fonsekca, essay, The New School for Social Research. (wikipedia.org)
- Constant elasticity of substitution (CES), in economics, is a property of some production functions and utility functions. (wikipedia.org)
- This aggregator function exhibits constant elasticity of substitution. (wikipedia.org)
- The CES production function is a neoclassical production function that displays constant elasticity of substitution. (wikipedia.org)
- As its name suggests, the CES production function exhibits constant elasticity of substitution between capital and labor. (wikipedia.org)
- n) s = 1 1 − r {\displaystyle s={\frac {1}{1-r}}} = Elasticity of substitution. (wikipedia.org)
- Uzawa showed the only possible n-factor production functions (n>2) with constant partial elasticities of substitution require either that all elasticities between pairs of factors be identical, or if any differ, these all must equal each other and all remaining elasticities must be unity. (wikipedia.org)
- This means the use of the CES functional form for more than 2 factors will generally mean that there is not constant elasticity of substitution among all factors. (wikipedia.org)
- Different nests (levels) allow for the introduction of the appropriate elasticity of substitution. (wikipedia.org)
- Here again, the coefficients a i {\displaystyle a_{i}} are share parameters, and s {\displaystyle s} is the elasticity of substitution. (wikipedia.org)
- Elasticity of intertemporal substitution (or intertemporal elasticity of substitution) is a measure of responsiveness of the growth rate of consumption to the real interest rate. (wikipedia.org)
- The net effect on current consumption is the elasticity of intertemporal substitution. (wikipedia.org)
- In the Ramsey growth model, the elasticity of intertemporal substitution determines the speed of adjustment to the steady state and the behavior of the saving rate during the transition. (wikipedia.org)

**coefficient**- 2. The elasticity coefficient is greater than 1 for a good that is income inelastic. (brainmass.com)
- 7. The elasticity coefficient is greater than zero for goods that complement. (brainmass.com)
- If the coefficient of output elasticity is greater than 1, then production is experiencing increasing returns to scale. (wikipedia.org)
- The coefficient of output elasticity can be used to estimate returns to scale. (wikipedia.org)
- The degree to which these factors change the reaction rate is described by the elasticity coefficient. (wikipedia.org)
- The elasticity coefficient is an integral part of metabolic control analysis and was introduced in the early 1970s and possibly earlier by Henrik Kacser and Burns in Edinburgh and Heinrich and Rapoport in Berlin. (wikipedia.org)
- Michaelis-Menten rate law), then the elasticity coefficient is given by: ε S v = n 1 + ( S / K s ) n {\displaystyle \varepsilon _{S}^{v}={\frac {n}{1+(S/K_{s})^{n}}}} Note that at low S the elasticity approaches n. (wikipedia.org)
- This means the elasticity is bounded between zero and the Hill coefficient. (wikipedia.org)
- Elasticities coefficient can also be computed numerically, something that is often done in simulation software. (wikipedia.org)
- In empirical work an elasticity is the estimated coefficient in a linear regression equation where both the dependent variable and the independent variable are in natural logs. (wikipedia.org)

**equivalent to the elasticity**- The power-law expansions used in the analysis invoke coefficients called kinetic orders which are equivalent to the elasticity coefficients. (wikipedia.org)

**elastic**- Most materials which possess elasticity in practice remain purely elastic only up to very small deformations. (wikipedia.org)
- When describing the relative elasticities of two materials, both the modulus and the elastic limit have to be considered. (wikipedia.org)
- If the material is isotropic , the linearized stress-strain relationship is called Hooke's law , which is often presumed to apply up to the elastic limit for most metals or crystalline materials whereas nonlinear elasticity is generally required to model large deformations of rubbery materials even in the elastic range. (wikipedia.org)
- Thus, if a bar of iron, twelve inches long , and of one square inch area of cross-section, could be made so elastic as to stretch to twice its length, the force required to stretch it until it were twenty-four inches long would be its modulus of elasticity in weight per square inch. (chestofbooks.com)
- Task: A. Discuss elasticity of demand as it pertains to elastic , unit, and inelastic demand. (brainmass.com)
- An elastic variable (with elasticity value greater than 1) is one which responds more than proportionally to changes in other variables. (wikipedia.org)
- This implies any control mechanism designed for elastic applications must consider in its decision process the time needed for the elasticity actions to take effect, such as provisioning another VM for a specific application component. (wikipedia.org)

**economics**- For the economics measurement, see Elasticity (economics) . (wikipedia.org)
- Innovation and the trade elasticity ," Journal of Monetary Economics , Elsevier, vol. 66(C), pages 32-46. (repec.org)
- Discussion questions on elasticity in economics. (brainmass.com)
- Elasticity may refer to: Elasticity (physics), continuum mechanics of bodies that deform reversibly under stress Numerous uses are derived from this physical sense of the term, which is inherently mathematical, such as used in Engineering, Chemistry, Construction and variously in Economics: Elasticity (data store), the flexibility of the data model and the clustering Elasticity (economics), a general term for a ratio of change. (wikipedia.org)
- In economics, output elasticity is the percentage change of output (GDP or production of a single firm) divided by the percentage change of an input. (wikipedia.org)
- Elasticity (economics) Charnes, A. (wikipedia.org)
- In economics, elasticity is the measurement of how an economic variable responds to a change in another. (wikipedia.org)
- The concept of elasticity has an extraordinarily wide range of applications in economics. (wikipedia.org)
- In mathematics and economics, the arc elasticity is the elasticity of one variable with respect to another between two given points. (wikipedia.org)
- Elasticity of a function Elasticity (economics) Allen, R. G. D. (1933). (wikipedia.org)

**Journal of Elasticity**- Journal of Elasticity: The Physical and Mathematical Science of Solids is a peer-reviewed scientific journal covering all aspects of elasticity. (wikipedia.org)
- Cambridge, 1927, p. 173 Roger Fosdick & Lev Truskinovsky (2003) About Clapyron's Theorem in Linear Elasticity, Journal of Elasticity 72(1-3): 145-72, Springer. (wikipedia.org)

**output elasticity**- It is sometimes called partial output elasticity to clarify that it refers to the change of only one input. (wikipedia.org)
- If the production function contains only one input, then the output elasticity is also an indicator of the degree of returns to scale. (wikipedia.org)
- Output elasticity is defined as the percentage change in output per one percent change in all the inputs. (wikipedia.org)
- Elasticities of scale Elasticity of scale or output elasticity measures the percentage change in output induced by a collective percent change in the usages of all inputs. (wikipedia.org)

**infinitesimal**- If the nonhomogeneous deformations are small, nonhomogeneous lung deformation problems are reduced to those solvable using infinitesimal elasticity, since only the small superimposed deformations are considered. (springer.com)
- The fundamental "linearizing" assumptions of linear elasticity are: infinitesimal strains or "small" deformations (or strains) and linear relationships between the components of stress and strain. (wikipedia.org)

**nonlinear**- Linear elasticity is a simplification of the more general nonlinear theory of elasticity and is a branch of continuum mechanics. (wikipedia.org)

**responsiveness**- 10. Price elasticity of supply measures the responsiveness of quantity supplied to changes in income. (brainmass.com)
- Price elasticity of demand Price elasticity of demand is a measure used to show the responsiveness, or elasticity, of the quantity demanded of a good or service to a change in its price. (wikipedia.org)
- Cross-price elasticity of demand Cross-price elasticity of demand is a measure of the responsiveness of the demand for one product to changes in the price of a different product. (wikipedia.org)
- Elasticity of complementarity (Hamermesh, 1993) is the percentage responsiveness of relative factor prices to a 1 percent change in relative inputs. (wikipedia.org)

**physics**- In physics , elasticity (from Greek ἐλαστός "ductible") is the ability of a body to resist a distorting influence or deforming force and to return to its original size and shape when that influence or force is removed. (wikipedia.org)

**Equation**- If v = V max S K m + S {\displaystyle v={\frac {V_{\max }S}{K_{m}+S}}} then it can be easily shown than ε S v = K m K m + S {\displaystyle \varepsilon _{S}^{v}={\frac {K_{m}}{K_{m}+S}}} This equation illustrates the idea that elasticities need not be constants (as with mass-action laws) but can be a function of the reactant concentration. (wikipedia.org)

**partial**- 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. (wikipedia.org)
- Given the definition of the elasticity in terms of a partial derivative it is possible for example to determine the elasticity of an arbitrary rate law by differentiating the rate law by the independent variable and scaling. (wikipedia.org)
- Since the elasticity can be defined logarithmically, that is: ε S v = ∂ ln v ∂ ln S {\displaystyle \varepsilon _{S}^{v}={\frac {\partial \ln v}{\partial \ln S}}} differentiating in log space is an obvious approach. (wikipedia.org)

**percentage change in output**- It exhibits increasing returns to scale if a percentage change in inputs results in greater percentage change in output (an elasticity greater than 1). (wikipedia.org)

**quantity supplied**- If the price elasticity of supply is zero the supply of a good supplied is "totally inelastic" and the quantity supplied is fixed. (wikipedia.org)

**demand**- Solution explains how to estimate the elasticity of demand. (brainmass.com)
- Used regression to estimate the demand function and hence calculate the elasticity . (brainmass.com)
- B. Calculate the point price elasticity of demand at a price of $25. (brainmass.com)
- 1. Describe and estimate the price elasticity of demand for a good or service of your company, or a company of interest to you. (brainmass.com)
- demand function is: Qd = 36315-9937 *price-0.09 * income+0.02 * customers + 2918* price of natural gas Estimate the (own) price elasticity (of demand). (brainmass.com)
- b) Estimate the price elasticity of demand at the price of $300. (brainmass.com)
- 4. As we move down a demand curve, price elasticity of demand rises. (brainmass.com)
- 9. If income elasticity of demand is 1.24 it means that for every 1 percent change in income there is a 1.24 percent change in price. (brainmass.com)
- How does the price elasticity of demand impact a company's pricing strategy? (brainmass.com)
- What is 'Price Elasticity of Demand' and how do you calculate it? (brainmass.com)
- The expert provides a discussion of income elasticity of demand. (brainmass.com)
- Discussion 1 One good where the price elasticity of demand is greater than one is fish and chips. (brainmass.com)
- 5.- Now turn to demand elasticity . (brainmass.com)
- The concept of elasticity is very useful to understand the economic behavior of transport supply and demand. (hofstra.edu)
- A major study of the price elasticity of supply and the price elasticity of demand for US products was undertaken by Hendrik S. Houthakker and Lester D. Taylor in the late 1960s. (wikipedia.org)
- In a manner analogous to the price elasticity of demand, it captures the extent of horizontal movement along the supply curve relative to the extent of vertical movement. (wikipedia.org)
- In particular, an understanding of elasticity is fundamental in understanding the response of supply and demand in a market. (wikipedia.org)
- It is common to refer to the absolute value of the price elasticity as simply price elasticity, since for a normal (decreasing) demand curve the elasticity is always negative and so the "minus" part can be made implicit. (wikipedia.org)
- Thus the demand of the football fans for hot dogs has 40% elasticity. (wikipedia.org)
- The variation in demand in response to a variation in price is called the price elasticity of demand. (wikipedia.org)
- Although the PED is negative for the vast majority of goods and services, economists often refer to price elasticity of demand as a positive value (i.e., in absolute value terms). (wikipedia.org)
- This measure of elasticity is sometimes referred to as the own-price elasticity of demand for a good, i.e., the elasticity of demand with respect to the good's own price, in order to distinguish it from the elasticity of demand for that good with respect to the change in the price of some other good, i.e., a complementary or substitute good. (wikipedia.org)
- The latter type of elasticity measure is called a cross-price elasticity of demand. (wikipedia.org)
- Elasticity is not the same thing as the slope of the demand curve, which is dependent on the units used for both price and quantity. (wikipedia.org)
- The point elasticity of demand method is used to determine change in demand within the same demand curve, basically a very small amount of change in demand is measured through point elasticity. (wikipedia.org)
- However, the point-price elasticity can be computed only if the formula for the demand function, Q d = f ( P ) {\displaystyle Q_{d}=f(P)} , is known so its derivative with respect to price, d Q d / d P {\displaystyle {dQ_{d}/dP}} , can be determined. (wikipedia.org)

**modulus**- The modulus of elasticity of a given material is the force required to elongate a piece of the material (whose area of cross-section is equal to one square inch) through space a distance equal to its primary length. (chestofbooks.com)

**plasticity**- there are entire courses devoted to the theory of elasticity, viscoelasticity and plasticity, which you are no doubt looking forward to taking. (brown.edu)
- But their most characteristic, though not perhaps their most general, property is that they combine in themselves the apparently incompatible properties of elasticity and rigidity on the one hand and plasticity on the other. (yourdictionary.com)

**empirical**- Empirical estimates of the elasticity vary. (wikipedia.org)

**biochemical**- The fact that different groups independently introduced the same concept implies that elasticities, or their equivalent, kinetic orders, are most likely a fundamental concept in the analysis of complex biochemical or chemical systems. (wikipedia.org)

**theory**- Elasticity theory" redirects here. (wikipedia.org)
- Linear elasticity theory is thus the best known and most widely used branch of solid mechanics. (brown.edu)
- The first third of the book contains the fundamentals of the theory of elasticity. (springer.com)
- Fung, Y.C. Theory of elasticity of the lung. (springer.com)
- Invoking the theory of rubber elasticity, one considers a polymer chain in a crosslinked network as an entropic spring. (wikipedia.org)
- An Armington elasticity is an economic parameter commonly used in models of consumer theory and international trade. (wikipedia.org)
- Elasticity is one of the most important concepts in neoclassical economic theory. (wikipedia.org)
- In the linear theory of elasticity Clapeyron's theorem states that the potential energy of deformation of a body, which is in equilibrium under a given load, is equal to half the work done by the external forces computed assuming these forces had remained constant from the initial state to the final state. (wikipedia.org)
- Love, A.E.H., "A Treatise on the Mathematical Theory of Elasticity", 4th ed. (wikipedia.org)

**polymers**- For rubbers and other polymers, elasticity is caused by the stretching of polymer chains when forces are applied. (wikipedia.org)
- Rubber elasticity, a well-known example of hyperelasticity, describes the mechanical behavior of many polymers, especially those with cross-links. (wikipedia.org)

**Definition**- The definition of elasticity is the state of being able to stretch and expand, or to be able to bounce back. (yourdictionary.com)

**cloud**- For the cloud computing term, see Elasticity (cloud computing) . (wikipedia.org)
- Elasticity is a defining characteristic that differentiates cloud computing from previously proposed computing paradigms, such as grid computing. (wikipedia.org)
- Let us illustrate elasticity through a simple example of a service provider who wants to run a website on an IaaS cloud. (wikipedia.org)
- When deploying applications in cloud infrastructures (IaaS/PaaS), requirements of the stakeholder need to be considered in order to ensure proper elasticity behavior. (wikipedia.org)
- Even though traditionally one would try to find the optimal trade-off between cost and quality or performance, for real world cloud users requirements regarding the behavior are more complex and target multiple dimensions of elasticity (e.g. (wikipedia.org)

**inputs**- A production function or process is said to exhibit constant returns to scale if a percentage change in inputs results in an equal percentage in outputs (an elasticity equal to 1). (wikipedia.org)

**price**- If the sales of an item drop by 5 % when the price increases by 10 %, its price elasticity is -0.5. (yourdictionary.com)
- Price elasticity of supply The price elasticity of supply measures how the amount of a good that a supplier wishes to supply changes in response to a change in price. (wikipedia.org)
- 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. (wikipedia.org)
- Price elasticities are almost always negative, although analysts tend to ignore the sign even though this can lead to ambiguity. (wikipedia.org)
- Various research methods are used to determine price elasticity, including test markets, analysis of historical sales data and conjoint analysis. (wikipedia.org)
- For example, if the price increases by 5% and quantity demanded decreases by 5%, then the elasticity at the initial price and quantity = −5%/5% = −1. (wikipedia.org)
- Two alternative elasticity measures avoid or minimise these shortcomings of the basic elasticity formula: point-price elasticity and arc elasticity. (wikipedia.org)

**mathematical**- Linear elasticity is the mathematical study of how solid objects deform and become internally stressed due to prescribed loading conditions. (wikipedia.org)

**approaches zero**- At high S the elasticity approaches zero. (wikipedia.org)
- 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. (wikipedia.org)

**concept**- The elasticity concept has also been described by other authors, most notably Savageau in Michigan and Clarke at Edmonton. (wikipedia.org)

**ratio**- Elasticity can be quantified as the ratio of the percentage change in one variable to the percentage change in another variable, when the latter variable has a causal influence on the former. (wikipedia.org)
- Elasticity has the advantage of being a unitless ratio, independent of the type of quantities being varied. (wikipedia.org)

**unity**- In this case the elasticity approaches unity at low reactant concentration (S) and zero at high reactant concentration. (wikipedia.org)

**therefore**- Linear elasticity is therefore used extensively in structural analysis and engineering design, often with the aid of finite element analysis. (wikipedia.org)

**flexibility**- The elasticity of a data store relates to the flexibility of its data model and clustering capabilities. (wikipedia.org)

**fundamental**- Commuting has also a very low elasticity as this category of movements is related to a fundamental economic activity that provides income. (hofstra.edu)

**different**- Depending on the transport activity, a movement is linked with different elasticities. (hofstra.edu)
- Technically speaking, curvature and elasticity are unrelated, but isoquants with different elasticities take on different shapes that might appear to differ in a general sense of curvature (see de La Grandville, Olivier (1997). (wikipedia.org)

**point**- As with every elasticity, this measure is defined locally, i.e. defined at a point. (wikipedia.org)
- Like the point elasticity, the arc elasticity can vary in value depending on the starting point. (wikipedia.org)
- in contrast, calculation of the point elasticity requires detailed knowledge of the functional relationship and can be calculated wherever the function is defined. (wikipedia.org)

**Constant**- Constant Elasticity of Transformation (CET) was first advanced by Alan Powell and Fred Gruen in a 1968 publication. (wikipedia.org)

**latter**- Its physical properties, permeability by water, extensibility and elasticity , receive their interpretation in the needs of the latter. (yourdictionary.com)

**stretch**- An example of elasticity is the ability of a woman's stomach to stretch during pregnancy. (yourdictionary.com)

**example**- An example of elasticity is the personality of someone who always recovers easily from disappointment. (yourdictionary.com)
- For example, India's national Integrated Energy Policy of 2005 noted current elasticity at 0.80, while planning for 7-8% GDP growth. (wikipedia.org)

**greater**- Why is the long run elasticity greater than the short run elasticity for gasoline? (brainmass.com)

**general**- Before we discuss the elasticity of gasoline, let's take a look at elasticities in general. (brainmass.com)
- The arc elasticity is used when there is not a general function for the relationship of two variables, but two points on the relationship are known. (wikipedia.org)
- In general, a low value of theta (high intertemporal elasticity) means that consumption growth is very sensitive to changes in the real interest rate. (wikipedia.org)

**Linear**- Linear elasticity models materials as continua. (wikipedia.org)
- In addition linear elasticity is valid only for stress states that do not produce yielding. (wikipedia.org)

**value**- Where elasticity is a value between 0 and 1 (inclusive). (allegro.cc)

**economic**- Activities that confer limited economic benefits tend to have higher elasticities. (hofstra.edu)

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