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Elaaticity Of Demand

Elasticity of Demand- It refers to response shown by demand due to change in price of commodity.                     In other words, it refers to percentage change in quantity demand due to percentage change in price. ▶ Measurement Of Price Elasticity 1. Total Expenditure Method 2. Percentage Method 1. Total Expenditure Method(TE) :-      TE= P×Q.              where, P= Price                                                Q= Quantity According to Prof. Marshall. There are three situations or cases. Case 1. e d = 1 or ed = unitary  [ed means elasticity of dem...