Discuss the concept of Elasticity of demand. - Biz Stack

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Monday, November 20, 2017

Discuss the concept of Elasticity of demand.


Elasticity of demand:
Elasticity measures the degree of responsiveness. Elasticity of demand measures the degree of responsiveness of quantity demand.
According to Prof. Lipsey, "Elasticity of demand is the percentage change in quantity demanded divided by percentage change in price."
                                      

Formula: 


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