Question

elasticity of substitute

Answer 1

It is measured as the ratio of proportionate change in the relative demand for two goods to the proportionate change in their relative prices. Elasticity of substitutionshows to what degree two goods or services can be substitutes for one another. See also elasticity of technical substitution.

Answer 2

Responsiveness of the buyer's of a good or service to the price changes in its substitutes. It is measured as the ratio of proportionate change in the relative demand for two goods to the proportionate change in their relative change. Elasticity of substitution shows to what degree to goods or services can be substitutes for one another. See also elasticity of technical substitution.