Elasticity - elasticity of demand or supply Price...

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Elasticity In addition to understanding how equilibrium prices and quantities change as demand  and supply change, economists are also interested in understanding how demand and  supply change in response to changes in prices and incomes. The responsiveness of  demand or supply to changes in prices or incomes is measured by the 
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Unformatted text preview: elasticity of demand or supply. Price elasticity of demand and supply . The price elasticity of demand is given by the formula: The price elasticity of supply is given by a similar formula:...
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