conomists use three terms frequently, demand, supply, and elasticity. By now you have a
pretty good understanding of the first two terms. This chapter will describe the third.
Simply stated, elasticity is a measure of responsiveness
e now move to analyze the supply side of the market. Business firms supply to the
market the goods and services that they produce. Therefore, we start off by looking
into the operations of a single business firm. In this chapt