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Expenditure and Elasticity

What is the e...

Question

What is the elasticity of supply and demand?

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Solution

The elasticity of supply and demand is that the quantity demanded of goods and services will change in response to the change in price. It is elastic when the supply value is greater than 1. It is inelastic when the supply value is less than 1.

Also see:

Price Elasticity of Demand Formula

Cross Price Elasticity of Demand Formula

Price Elasticity of Supply Formula

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