Question

What is the importance of the study of elasticity of demand?

Answer 1

Answer:

Some important points from which you can realize the important of price elasticity of demand.

1.International trade:

2.factor pricing

3.dicision of monopolistic

4.Paradox of poverty amidst plenty

etc...

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Answer 2

$\huge\bold\green{ANSWER :-}$

Importance of the study of elasticity of demand :-

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.