Types of Elasticity of Demand
Mohammed Julfekar Haider
This article describes about the different types of elasticity of demand. Check to know the various terms involved and the definitions of such terms.
The different types of Elasticity of Demand have been explained in brief as follows:
Elasticity of Demand:
The degree of responsiveness of a quantity demanded of a commodity to a given change in price, during a given period of time can be termed as the elasticity of demand.
When a small change in price brings about more than proportionate change in demand, it is known as elastic demand.
When a big change in price brings about less than proportionate change in demand, it is known as inelastic demand.
Perfectly Elastic Demand:
At the existing price or even a small change in price brings about infinite change in demand, it it known as perfectly elastic demand.
Perfectly Inelastic Demand:
If the change in price does not bring about any change in demand, it is known as perfectly inelastic demand.
Income Elasticity of Demand:
It is the degree of responsiveness of quantity demanded of a commodity to a change in the income of the consumer, is know as income elasticity of demand.
Cross Price Elasticity of Demand:
It is the degree of responsiveness of quantity demanded of a commodity to a given change in the price of related goods like substitutes or complementary goods
Here, we finish the types of elasticity of demand.
Did you like this resource? Share it with your friends and show your love!
Responses to "Types of Elasticity of Demand"
No responses found. Be the first to respond...
Notify me by email when others post comments to this article.
Do not include your name, "with regards" etc in the comment. Write detailed comment, relevant to the topic.
No HTML formatting and links to other web sites are allowed.
This is a strictly moderated site. Absolutely no spam allowed.
to fill automatically.
(Will not be published, but
to validate comment)
Type the numbers and letters shown on the left.
Subscribe to Email
Get Jobs by Email
Forum posts by Email
Articles by Email
Awards & Gifts
Last 7 Days
Hafeezur Rahman P
ISC Technologies, Kochi - India. © All Rights Reserved.