Question

Explain the concept of Elasticity of Demand.

Answer 1

Ed = -(∆Q/∆P × P/Q)
this is the formula to calculate the elasticity of demand.
∆P= P1-P, ∆Q= Q1-Q.

Answer 2

Explanation:

The elasticity of demand is an important key to measure the demand for any product. Demand for any product can be change according to the change in others feature or variables of the product. The elasticity of demand does not only related to the decrease in demand, it has also concern with the increase in demand.  Many variables decide the demand for the product in the market. Like when the price of a product increases people start using less quantity of that product. The income of people also decides the elasticity of demand of a product.