Elasticity of Demand and Supply Microeconomics (HINDI)



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The definition of elasticity, a measure of responsiveness to changes in prices or incomes. The importance of the price elasticity of demand, which measures the responsiveness of the quantity demanded to price. The price elasticity of demand is equal to the per cent change in the quantity demanded divided by the per cent change in the price as you move along the demand curve. Per cent changes are best measured using the midpoint method, in which the per cent change in each variable is calculated using the average of starting and final values. Demand is perfectly inelastic when the quantity demanded does not respond at all to changes in the price. When demand is perfectly inelastic, the demand curve is a vertical line. The total revenue is the total value of sales of a good or service. It is equal to the price multiplied by the quantity sold

Published by: E.Z. Classes Published at: 4 years ago Category: آموزشی