Price elasticity of demand

{
  "id": "MLC-T-ENV-022063",
  "term": "Price elasticity of demand",
  "field": "Environment",
  "term_source": "Price Elasticity Of Demand",
  "definition": "1. A measure of the responsiveness of water usage to changes in price; measured by the percentage change in usage divided by the percentage change in price.\n\n2. Measures the relationship between changes in quantity demanded of a good and changes in its price. It is calculated as the percentage change in quantity demanded that occurs in response to a percentage change in price. As the price of a good rises, consumers will usually demand a lower quantity of that good. The greater the extent to which quantity demanded falls as price rises, the greater is the price elasticity of demand. Some goods for which consumers cannot easily find substitutes, such as gasoline, are considered price inelastic. Note that elasticity can differ between the short term and the long term. For example, if the price of gasoline rises, consumers will eventually find ways to conserve their use of the resource. Some of these ways, like finding a more fuel-efficient car, take time. Hence gasoline would be price inelastic in the short term and more price elastic in the long term.",
  "subject": "Water",
  "references": [
    "Water Conservation Plan Guidelines Glossary",
    "Preparing Economic Analyses Glossary"
  ],
  "url": "https://mlchart.com/terminology/environment/price-elasticity-of-demand/"
}