Skip to main content

This link is exclusively for students and staff members within this organisation.

Unauthorised use will lead to account termination.

Previous

When is interest usury?

Next

The productivity problem and the recession

Elasticity

Elasticity is a way of measuring the sensitivity of one variable to changes in another variable that influences it. Peter Smith explains how consumers and firms respond to changes in the price of and demand for goods

• This measures the sensitivity of the quantity demanded of a good to a change in its price.

• It is calculated as the percentage change in quantity demanded divided by the percentage change in price.

Your organisation does not have access to this article.

Sign up today to give your students the edge they need to achieve their best grades with subject expertise

Subscribe

Previous

When is interest usury?

Next

The productivity problem and the recession

Related articles: