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.
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