Elasticity of Demand

Discipline: Economics

Elasticity of Demand is the sensitivity of the demand level for a specific good or service to a change in certain variables.

The principle variables that affect the elasticity of demand (or the main factors in the demand function) are: (1) the price of the good or service, (2) consumer income level, (3) the price of a substitute good or service, and (4) advertising.

elasticity of supply

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