Cryptocurrency Q&A
What is the connection between elasticity and demand and supply?
What is the connection between elasticity and demand and supply?
BlockchainBaron
Mon Jan 20 2025
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6
answers
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I want to understand the relationship between elasticity, demand, and supply. How does elasticity affect the demand and supply of a product or service in the market? Is there a correlation between the three?
6 answers
KimonoElegant
Wed Jan 22 2025
Both demand and supply elasticities are crucial concepts in economics.
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Michele
Wed Jan 22 2025
Demand elasticity refers to the responsiveness of quantity demanded to changes in price.
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KiteFlyer
Wed Jan 22 2025
It is calculated as the percentage change in quantity demanded divided by the percentage change in price.
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Martina
Wed Jan 22 2025
Similarly, supply elasticity measures the responsiveness of quantity supplied to changes in price.
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Chloe_emma_researcher
Wed Jan 22 2025
This is also computed as the percentage change in quantity supplied divided by the percentage change in price.
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