Lesson Glossary
Perfect (or pure) competition
A rare market structure characterized by many sellers (selling exactly the same product) and many buyers, no barriers to entry into the market for new firms, and perfect knowledge of prices (so there are no price differences and no individual can influence them).
Price elasticity of demand (PED)
An expression of how much more or less consumers will buy of a product if its price changes.
Price elastic
If the quantity of a good or service bought changes a lot when price rises or falls, it is said to be price elastic.
Price inelastic
If the quantity of a good or service bought does not change much when price rises or falls, it is said to be price inelastic.
If the quantity of a good or service bought does not change much when price rises or falls, it is said to be price inelastic.
Sales revenues
The amount of money realized from selling goods or services in the normal operations of a company in a specified period.
The amount of money realized from selling goods or services in the normal operations of a company in a specified period.