Elasticity (economics): Difference between revisions
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imported>Nick Gardner (start-up only) |
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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'' | 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'' <ref>[http://www.econlib.org/library/Marshall/marP.html Alfred Marshall ''Principles of Economics'' Chapter IV Macmillan 1964]</ref> | ||
==Price elasticity of demand== | ==Price elasticity of demand== | ||
<math>(dq/q)/(dp/p)</math>. | <math>(dq/q)/(dp/p)</math>. | ||
Revision as of 06:10, 5 January 2008
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 [1]
Price elasticity of demand
.
