Elasticity of Demand
Elasticity of demand can be defined as proportionate change in quantity demanded for a commodity due to the proportionate change in its determinants like, price of the commodity, income of the consumer, price of the related good, etc. In other words, it is the ratio of percentage change in quantity demand for a commodity and its determinants. It deals with the change in direction as well as magnitude(value) in quantity demanded for a commodity due to change in its determinants. It means that, how to and how much change in quantity demand due to 1% change in its determinants.
Chapter 3 Part 1
