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Elasticity Refers To The Degree of Responsiveness in Supply or Demand in Relation To Changes in
Elasticity Refers To The Degree of Responsiveness in Supply or Demand in Relation To Changes in
price. If a curve is more elastic, then small changes in price will cause large changes in quantity
consumed. If a curve is lesselastic, then it will take large changes in price to effect a change in
quantity consumed.
Price elasticity of demand is a measure of the relationship between a change in the quantity
demanded of a particular good and a change in its price. Price elasticity of demand is a
term in economics often used when discussing price sensitivity. The formula for calculating
price elasticity of demand is:
Price elasticity of supply (PES or Es) is a measure used in economics to show the
responsiveness, or elasticity, of the quantity supplied of a good or service to a change in
its price.
income elasticity of demand measures the responsiveness of the quantity demanded for a
good or service to a change in the income of the people demanding the good, ceteris paribus.
the cross elasticity of demand or cross-price elasticity of demand measures the
responsiveness of the quantity demanded for a good to a change in the price of another good,
ceteris paribus.
more than the numerator (Ed<1). If the demand is elastic, then the change in Quantity demanded will be
higher than the change in price (Ed>1)