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Elasticity

  • Thread starter JOYDEEP MAZUMDAR
  • Start date
J

JOYDEEP MAZUMDAR

Member
SIR
I am finding difficult to understand elasticity of demand and supply.Please guide me.
 
:) Elasticity measures the extent of the response to a change in something. i.e. an elastic band can stretch to give more response. Personally I have an elastic demand function as when I go shopping, if something has been reduced I will buy more of it, whereas someone who has an inelastic demand function will be a lot less affected by changes in price.
Try looking all the elasticity equations together and you will see that they are all really similar - it's quite easy once you've cracked it so don't worry.
 
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