Elasticity (economics)

From Citizendium
Revision as of 07:05, 5 January 2008 by imported>Nick Gardner (start-up only)
(diff) ← Older revision | Latest revision (diff) | Newer revision → (diff)
Jump to navigation Jump to search

Elasticity is defined as the proportional change of a dependent variable divided by the proportional change of a related independent variable at a given value of the independent variable. The term was introduced by Alfred Marshall and is explained with great clarity in his Principles of Economics

Price elasticity of demand

.