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Unformatted text preview: for different goods such as food, automobiles , film shows, garments, hardware materials, machines, land etc. In other words it is important to know the extent of rise or fall in the demand with a given change in the price for each individual good. This is exactly the purpose served by the concept of price elasticity of demand; this concept is advanced and subtle in nature. It was first developed by Alfred Marshall; he has defined elasticity as follows: Elasticity of demand is the degree of responsiveness with which quantity demanded changes for a given change in price. In other words it is a proportional change in the quantity demanded to a proportional change in price ....
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- Fall '10
- Price Elasticity