Basic terms of Elasticity of Demand | Degrees | Kinds | Measurement | Economics in English

Microeconomics in English   

Basic terms of Elasticity of Demand

Degrees | Kinds | Measurement   

Economics in English

Basic terms of Elasticity of Demand | Degrees | Kinds | Measurement 

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Basic Elements / Points of elasticity of demand

The proportional change in price of goods and their demand is referred to elasticity of demand.

As we already have discussed the elasticity of demand in the last lecture, here we are going to discuss three major points or elements related to elasticity of demand. These are:

        i.            Kinds of elasticity of demand

      ii.            Methods of measurement of elasticity of demand

    iii.            Degrees of elasticity of demand

Kinds of elasticity of demand

      There are three kinds of elasticity of demand:

·         Price Elasticity Of Demand

·         Income Elasticity Of Demand

·         Cross Elasticity Of Demand

Methods of measurement of elasticity of demand

These are the methods of measurement of elasticity of demand:

·         Total Outlay Method / Marshall Method

·         Percentage Method

·         Point Elasticity Method

·         Arc Elasticity Method

Degrees of elasticity of demand

Here are the Degrees of elasticity of demand:

·         E = 1

·         E > 1

·         E < 1

·         No elasticity

·         Absolute Elasticity