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Elasticity of Demand

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Elasticity of Demand : 

The term elasticity indicates responsiveness of one variable to a change in the other variable. Elasticity of demand refers to the degree of responsiveness of quanitity demanded to a change in its price or any other factor. According to Prof. Marshall, “Elasticity of demand is great or small according to the amount demanded which rises much or little for a given fall in price and quantity demanded falls  much or little for a given rise in price.”
It is clear from the above definition that elasticity of demand is a technical term which describes the responsiveness of change in quantity demanded to fall or rise in its price. In other words, it is the ratio of percentage change in quantity demanded of a commodity to a percentage change in price.

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