Question

What is the importance of elasticity of demand? only for class 11​

Answer 1

Answer:

The concept of elasticity for demand is of greater importance for determing prices of various factors for Production. Factors of production are paid according to their elasticity of demand .In other word if demand of a factor is inelastic,its price will be high and if it is elastic the price will be low.

Answer 2

Answer:

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The concept of elasticity for demand is of great importance for determining prices of various factors of production. Factors of production are paid according to their elasticity of demand. In other words, if the demand of a factor is inelastic, its price will be high and if it is elastic, its price will be low