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What is it ?
· As elasticity is a measure of sensitivity, its use is
not just confined to influences on demand but
can also be useful to in evaluating the sensitivity
of quantity supplied to a change in a determinant
of such a price.
· The Formula :
% QS The measure of sensitivity of quantity supplied to a change in price of good/service
% P…read more

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Elasticity
· Elastic >1
· 0-1 = Inelastic
· 1= 10% increase in price induces
a 10% increase in quantity
supplied. UNIT ELASTICITY.…read more

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2 FACTORS THAT DETERMINE
PES:
· Availability of Substitues
· Time…read more

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