ELASTICITY OF DEMAND - COMMERCEIETS

LAW OF DEMAND VS ELASTICITY OF DEMAND

August 6, 2019 commerceiets No Comments

Before understanding the difference between Law of Demand vs Elasticity of Demand, both concepts should be clear: LAW OF DEMAND Law of demand explains the relationship between price of the commodity and its demand. The law states that there is inverse or negative relationship between the demand and price of the commodity, ceteris paribus i.e….

KEY DIFFERENCES, MICRO ECONOMICS

PRICE ELASTICITY OF DEMAND

July 31, 2019 commerceiets No Comments

MEANING Price Elasticity of demand is the rate at which quantity purchased changes with the change in price. It is the ratio of percentage change in quantity demanded to percentage change in the price of the commodity, other factors remaining the same. Ed= (-) Percentage change in quantity demanded/ Percentage change in price ACCORDING TO…

MICRO ECONOMICS