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Hello: Can you tell me where on the internet I can get a good source on elasticity?
Thank you
Thank you
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Elasticity is a measure of how responsive a product or service is to changes in price. It measures the percentage change in quantity demanded or supplied in response to a change in price.
The factors that affect elasticity include availability of substitutes, time horizon, proportion of income spent on the product, and product differentiation.
Elastic products have a high degree of responsiveness to changes in price, meaning that a small change in price will result in a large change in quantity demanded or supplied. Inelastic products have a low degree of responsiveness, meaning that changes in price will have little effect on the quantity demanded or supplied.
Elasticity is calculated by dividing the percentage change in quantity by the percentage change in price. This gives the percentage change in quantity demanded or supplied for a 1% change in price.
Elasticity is important because it helps businesses and governments make decisions about pricing and production. It also helps determine the impact of taxes and subsidies on markets and consumer behavior.