INDUCED SAVING: Household saving that depends on income or production (especially disposable, national income, or gross national product). An increase in household disposable income triggers an increase in induced saving. Induced saving is graphically depicted as the slope of the saving or propensity-to-save line, and is measured by the marginal propensity to save. The induced relation between income and saving, as well as induced expenditures, form the foundation of the multiplier effect triggered by changes in autonomous expenditures.

     See also | consumption expenditures | disposable income | gross domestic income | slope | consumption line | marginal propensity to consume | autonomous consumption | induced expenditure | autonomous expenditure | induced saving | multiplier | accelerator |

INDUCED SAVING, AmosWEB GLOSS*arama, http://www.AmosWEB.com, AmosWEB LLC, 2000-2024. [Accessed: December 6, 2024].

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The relative response of a change in quantity supplied to a change in price. More specifically the price elasticity of supply is the percentage change in quantity supplied due to a percentage change in price. This notion of elasticity captures the supply side of the market. A comparable elasticity on the demand side is the price elasticity of demand. Other notable supply elasticities are income elasticity of demand and cross elasticity of demand.

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