Economics: Price Elasticity of Demand
When you start putting the curves into numbers and a formula you can get the specific Price Elasticity of Demand (or Supply depending on what you are charting). The answer that is figured from this equation is used to measure just how much the price of an item can be manipulated before demand will change.
The perfect instances are obviously ∞ or 0 as I covered before. For the imperfect instances, the answers obviously aren't as restrictive, but they can be seen as answers that are either greater than one or less than one. The actual answer is found by dividing the percent change in price into the percent change of quantity. Looking at it theoretically, if the Numerator of a fraction is smaller than the denominator the answer is less than 1 and if reversed, the answer is greater than 1 for example 1 divided by 2 is one half and two divided one is two. So if you look a bit further into to this concept you may be thinking to yourself, "if the change in quantity is negative then that numerator will be negative, so the answer will always be less than one", that is a completely true observation, but in this case we're just going to be looking at the absolute value of the changes and answers. because either way it's the same effect.
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