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Elasticities Of Demand

ELASTICITIES OF DEMAND

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Title: ELASTICITIES OF DEMAND

Essay Details:

Subject: Business

Author: Omar A

Date: June 22, 2016

Level: University

Grade: A

Length: 9 / 2679

Essay text:

With elasticity of demand, economists are concerned not only with the direction of the change in demand but also the size of the change. PRICE ELASTICITY OF DEMAND:- Price elasticity of demand refers to the responsiveness of quantity demanded to a change in price. Where quantity. demanded is very responsive to price changes — a small change in price leading to a relatively large change in quantity demanded demand is said to be elastic. Whereas when quantity demanded is relatively unresponsive to price changes, demand is inelastic. To be more precise, elasticity of demand is the relationship between the proportionate change in price and the proportionate change in quantity demanded...

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