Factors Determining the Elasticity of Demand The demand for a commodity is more elastic and that of the other commodity is less elastic, this usually depends on several factors. It is important to note that the elasticity of demand for a product can change over time. For example, the demand for smartphones has become more …
Classification of Elasticity The Elasticity of Demand could be of 3 types based on the factor which affects the change in the demand for a commodity. Price Elasticity of Demand Income Elasticity of Demand Cross Elasticity of Demand Measurement of the Elasticity Total Outlay Method Proportionate or Percentage Method Point Method or Geometrical Method
Meaning of the Elasticity of Demand The Elasticity of Demand is related to the Law of Demand, it is the measure of the change in the demand of a commodity with respect to the change in the price of the commodity. In simple words, elasticity of demand refers to an increase or decrease in demand, …
Exceptions to The Law of Demand From the analysis of The Law of Demand, it is clear that in ordinary conditions, demand increases on decrease in price of a commodity and the demand curve falls downwards from left to right. But there are some exceptions to the law of demand and sometimes, even on decrease …
Definition of The Law of Demand The law of demand states that other things remain the same, a decrease in prices causes an increase in demand and an increase in prices causes a decrease in demand. This law is based on The Law of Diminishing Utility which states that as we keep purchasing a commodity its …
