The degree of responsiveness of change in demand as a result of change in its price is known as elasticity of demand. I mathematical language we can say that;
Elasticity of demand =
%age change in Quantity Demanded
DIVIDED BY
%age change in the Price.
it is what elasticity of demand
price elasticity of demand is the degree of responsiveness of demand where by change in price of a commodity bring proportionate change in quantity demanded.
Price elasticity of demand is a way to determine marginal revenue. Optimal revenue and, more importantly, optimal profit will occur to the point when marginal revenue = marginal cost, or the price elasticity of demand < 1.
When you have less income you tend to consume less.
1)price elasticity of demand 2)income elasticity of demand 3)cross elasticity of demand
Unitary elasticity is when the price elasticity of demand is exactly equal to one.
distinguish between price elasticity of demand and income elasticity of demand
there are three methods of measuring elasticity of demand
I am at a loss for the answer please help me.
In economics , the cross elasticity of demand and cross price elasticity of demand measures the responsiveness of the quantity demand of a good to a change in the price of another good.
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Elasticity an important concept for a business like beachfront properties because it determines how much the value of the property could potentially fluctuate. If the price goes down, demand increases.