What is elasticity of demand

First, think of 'elasticity' as a general word.it means "ability stretch". Therefore elasticity of demand could be understood to be how demand of a certain commodity strecthes or reacts in response to changes variables that affects demand.

CO
Answered by Cynthia O. Economics tutor

2710 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Explain how a decrease in interest rates affects real GDP and inflation. When may a decrease in the interest rate not affect real GDP?


Perfect competition theory is based on very unrealistic assumptions. Evaluate whether such a theory is useful in explaining the behaviour of real world firms.


Discuss the extent to which recent changes in monetary policy have impacted upon the UK economy


Why does a lower interest rate increase aggregate demand?


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2026 by IXL Learning