Explain the meaning of elasticity of demand with the help of curves?
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ʙʏ ᴅᴇғɪɴɪᴛɪᴏɴ, ᴛʜᴇ ᴇʟᴀsᴛɪᴄɪᴛʏ ᴏғ ᴅᴇᴍᴀɴᴅ ɪs ᴛʜᴇ ᴄʜᴀɴɢᴇ ɪɴ ᴅᴇᴍᴀɴᴅ ᴅᴜᴇ ᴛᴏ ᴛʜᴇ ᴄʜᴀɴɢᴇ ɪɴ ᴏɴᴇ ᴏʀ ᴍᴏʀᴇ ᴏғ ᴛʜᴇ ᴠᴀʀɪᴀʙʟᴇ ғᴀᴄᴛᴏʀs ᴛʜᴀᴛ ɪᴛ ᴅᴇᴘᴇɴᴅs ᴏɴ. ... ᴛʜᴇ ʀᴇsᴘᴏɴsɪᴠᴇɴᴇss ᴏғ ᴛʜᴇ ǫᴜᴀɴᴛɪᴛʏ ᴅᴇᴍᴀɴᴅᴇᴅ ᴛᴏ ᴛʜᴇ ᴄʜᴀɴɢᴇ ɪɴ ɪɴᴄᴏᴍᴇ ɪs ᴄᴀʟʟᴇᴅ ɪɴᴄᴏᴍᴇ ᴇʟᴀsᴛɪᴄɪᴛʏ ᴏғ ᴅᴇᴍᴀɴᴅ ᴡʜɪʟᴇ ᴛʜᴀᴛ ᴛᴏ ᴛʜᴇ ᴘʀɪᴄᴇ ɪs ᴄᴀʟʟᴇᴅ ᴘʀɪᴄᴇ ᴇʟᴀsᴛɪᴄɪᴛʏ ᴏғ ᴅᴇᴍᴀɴᴅ.
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Elastic demand or supply curves indicate that quantity demanded or supplied respond to price changes in a greater than proportional manner. An inelastic demand or supply curve is one where a given percentage change in price will cause a smaller percentage change in quantity demanded or supplied. Thank you...
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