P. 1
Elasticity of Demand

Elasticity of Demand

|Views: 0|Likes:
Published by Hryshikesh Dihingia

More info:

Published by: Hryshikesh Dihingia on Nov 05, 2010
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as DOCX, PDF, TXT or read online from Scribd
See more
See less

05/12/2014

pdf

text

original

Responsiveness of the demand for a good or service to the increase or decrease in its price.

Normally, sales increase with drop in prices and decrease with rise in prices. As a general rule, appliances, cars, confectionary and other nonessentials show elasticity of demand whereas most necessities (food, medicine, basic clothi ng) show inelasticity of demand (do not sell significantly more or less with changes in price).

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->