Managerial Economics - Demand Analysis
Elasticity Of Demand - Demand Analysis
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In economics, the term elasticity means a proportionate (percentage) change in one variable relative to a proportionate (percentage) change in another variable.
Elasticity
Of Demand
In economics, the term elasticity means a proportionate (percentage) change in one variable relative to a proportionate (percentage) change in another variable. The quantity demanded of a good is affected by changes in the price of the good, changes in price of other goods, changes in income and changes in other factors. Elasticity is a measure of just how much of the quantity demanded will be affected due to a change in price or income.
Elasticity of Demand is a technical term used by economists to describe the degree of responsiveness of the demand for a commodity due to a fall in its price. A fall in price leads to an increase in quantity demanded and vice versa.
The elasticity of demand may be as follows:
1. Price Elasticity
2. Income Elasticity and
3. Cross Elasticity
In economics, the term elasticity means a proportionate (percentage) change in one variable relative to a proportionate (percentage) change in another variable. The quantity demanded of a good is affected by changes in the price of the good, changes in price of other goods, changes in income and changes in other factors. Elasticity is a measure of just how much of the quantity demanded will be affected due to a change in price or income.
Elasticity of Demand is a technical term used by economists to describe the degree of responsiveness of the demand for a commodity due to a fall in its price. A fall in price leads to an increase in quantity demanded and vice versa.
The elasticity of demand may be as follows:
1. Price Elasticity
2. Income Elasticity and
3. Cross Elasticity
Tags : Managerial Economics - Demand Analysis
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