Category: 4. Elasticity of Demand

Elastic Demand and Inelastic Demand refer to how sensitive the quantity demanded of a good or service is to changes in its price. When demand for a product is elastic, it means that changes in price result in relatively larger or equal changes in quantity demanded. However, when demand for a product is inelastic, it means that…

The quantity of a good or service that a consumer is willing and able to purchase at different price levels available during a given time period is known as Demand. Generally, demand is interchangeably used with want and desire; however, in economics these terms are different. Desire is just a wish of a consumer to purchase a…

What is Price Elasticity of Demand? The proportionate change in the quantity demanded of a commodity due to a proportionate change in the price of the commodity is called Price Elasticity of Demand. Consumers usually buy more when the price of the commodity falls and tends to buy less when the price of the commodity rises.…