Define the price elasticity, Microeconomics

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Price elasticity is used in economics to determine the changes in price of goods and services. It measures the change in price demanded and quality supplied.

Determinants of price elasticity include the various factors like necessities availabilities of the products in the market size time and the definition of the market.

Necessities include the daily used goods which are necessary and the quantity demanded of those products is high.

Availability here defines the substitutes availability whether the goods and if the goods are not available in the market then its substitute is available or not so that a buyer can give more money and pay for it if it fulfills the satisfaction level.

The market size depends on the basis of the products and the requirements.

The timing is also a factor because if the buyer has a sufficient time and amount then he will go for the good market but if not then he will just buy it for the cause of buying.


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