04-25-2015, 10:01 AM
Elasticity of demand
Elasticity of demand is defined as percentage change in quantity demanded of a commodity to percentage change in any of the determinants of demand. Elasticity of demand explains quantitative relationship between quantity demanded of a commodity and its determinants.
The degree by which quantity changes as price changes is called the price elasticity of demand. It is the percentage change in quantity to the percentage change in price (% Change in Quantity / % Change in Price).
Elasticity of demand is defined as percentage change in quantity demanded of a commodity to percentage change in any of the determinants of demand. Elasticity of demand explains quantitative relationship between quantity demanded of a commodity and its determinants.
The degree by which quantity changes as price changes is called the price elasticity of demand. It is the percentage change in quantity to the percentage change in price (% Change in Quantity / % Change in Price).