Economic and Game Theory
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"Inside every small problem is a large problem struggling to get out." | |||||
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change in Quantity demanded(or supplied)/change in price Demand or supply of a product is considered to be elastic if the demand (or supply) changes a great deal to a relatively small change in price, or has an elasticity greater than one. The opposite is also true; a product is considered to be inelastic if it has an elasticity of less than one. If a product has an elasticity of one, it has unitary elasticity, or is considered to be unit elastic. Hope that helps! [Manage messages] |