What does elasticity measure?
What does elasticity measure?
An elasticity of demand measures how responsive quantity demanded is to a change in one determinant of demand. It compares two percentage changes, with all other influences held constant.
Step-by-step lessons on CIE Intl A Level Economics 2.2.1 definition of price elasticity, income elasticity and cross elasticity of demand (PED, YED, XED). Each one builds up to exam-style questions.