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    waqas_m's Avatar
    waqas_m Posts: 2, Reputation: 1
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    #1

    May 12, 2010, 04:18 AM
    Elasticity of demand and elasticity of supply
    Hello every one,

    Do let me know elasticity of demand and elasticity of supply means the same as price elasticity of demand and price elasticity of supply?

    If yes then its mean we use the same formula of price elasticity of demand and supply or they are different?

    Waiting... :confused:
    ArcSine's Avatar
    ArcSine Posts: 969, Reputation: 106
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    #2

    May 12, 2010, 12:07 PM
    The elasticity of demand, and of supply, is the concept of measuring how sensitive they are to price changes. The phrase "elasticity of demand" is just the shortcut way of saying "price elasticity of demand", with the word 'price' simply being understood. Ditto for supply elasticity.

    Since supply and demand generally have opposite responses to price movements, then their formulas will differ.
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