Demand Elasticity Assignment Help

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Learning Objectives

·       To understand the concept of elasticity of demand, to measure and interpret the elasticity coefficients,          To identify the determinants of demand elasticity, To exemplify the demand-revenue relationship, 

The degree of change in demand cannot be assessed by demand curves and demand schedules. Therefore, in this chapter we will introduce the concept of elasticity that studies the magnitude of change in demand. Elasticity of demand is the responsiveness of the quantity demanded of a good or service to a change in anyone variable influencing demand'. As such there is a specific type of elasticity for a single determinant of demand. We will discuss about price, income, cross, and promotional elasticities of demand. Various pricing decisions and policy decisions are dependent on these demand elasticities. 

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