Tag Archives: Formula

Elasticity of Demand: Type, Formula, Key Factor

What it is: The elasticity of demand measures the responsiveness of demand to changes in determinants such as the price of the good itself (own-price) , prices of other goods, and income. To calculate it, you divide the percentage change in demand by the percentage change in those factors. Types of elasticity of demand Economists use three variables to measure the elasticity of… Read More »