Elasticity (economics)

In economics, elasticity is the measurement of how responsive an economic variable is to a change in another. It gives answers to questions such as: * "If I lower the price of a product, how much more will sell?" * "If I raise the price of one good, how will that affect sales of this other good?" * "If the market price of a product goes down, how much will that affect the amount that firms will be willing to supply to the market?" A major study of the price elasticity of supply and the price elasticity of demand for US products was undertaken by Hendrik S. Houthakker and Lester D. Taylor.

Elasticity (economics)

In economics, elasticity is the measurement of how responsive an economic variable is to a change in another. It gives answers to questions such as: * "If I lower the price of a product, how much more will sell?" * "If I raise the price of one good, how will that affect sales of this other good?" * "If the market price of a product goes down, how much will that affect the amount that firms will be willing to supply to the market?" A major study of the price elasticity of supply and the price elasticity of demand for US products was undertaken by Hendrik S. Houthakker and Lester D. Taylor.