Elasticity - elasticity of demand or supply. Price...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
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 
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

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:...
View Full Document

Ask a homework question - tutors are online