elasticity of substitution
- elasticity of substitution
elasticity of substitution elasˌticity of substiˈtution noun [uncountable]
ECONOMICS the degree to which one
input can be replaced by another. For example, in producing goods, if the cost of wages increases and the cost of machinery and capital used to pay for it stays the same, it may be possible to increase the amount of machinery used and so decrease the amount of wages paid
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elasticity of substitution UK US noun [U]
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The report discusses the elasticity of substitution between home and foreign goods.
Financial and business terms.
2012.
Look at other dictionaries:
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). It measures the curvature of an isoquant.Mathematical definitionLet the utility over… … Wikipedia
Constant elasticity of substitution — In economics, Constant elasticity of substitution (CES) is a property of some production functions and utility functions. More precisely, it refers to a particular type of aggregator function which combines two or more types of consumption, or… … Wikipedia
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Elasticity of complementarity — (Hamermesh, 1993) is the percentage responsiveness of relative factor prices to a 1 percent change in relative inputs.Mathematical definitionGiven the production function f(x 1,x 2) then the elasticity of complementarity is defined as: c = frac… … Wikipedia
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substitution — The principle by which CME Clearing becomes the buyer to every seller and the seller to every buyer upon the successful matching of two trade records or upon the successful completion of initial settlement for ex pit transactions. Chicago… … Financial and business terms
Armington elasticity — An Armington elasticity is an economic parameter commonly used in models of consumer theory and international trade. It represents the elasticity of substitution between products of different countries, and is based on the assumption made by Paul … Wikipedia
substitution elasticity — rate of change in the willingness to exchange two products in relation to their prices … English contemporary dictionary
Price elasticity of demand — Not to be confused with Price elasticity of supply. PED is derived from the percentage change in quantity (%ΔQd) and percentage change in price (%ΔP). Price elasticity of demand (PED or Ed) is a measure used in economics to show the… … Wikipedia
Wealth elasticity of demand — in microeconomics is the relation of the proportional change in consumption of a good to a proportional change in wealth (as distinct from changes in personal income). Measuring and accounting for the variability in this elasticity is a… … Wikipedia
