Price Elasticity of Demand and Supply in Economics - Presentation
VerifiedAdded on 2023/06/11
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This presentation provides an overview of price elasticity of demand and supply in economics. It defines price elasticity of demand as the ratio of change in quantity demanded to the change in price, distinguishing between elastic, inelastic, and unitary demand. Factors affecting price elasticity of demand include the nature of products, availability of substitutes, and income levels. Similarly, price elasticity of supply is defined as the responsiveness of quantity supplied to price changes, with classifications of elastic, inelastic, perfectly inelastic, and perfectly elastic supply. Key factors influencing price elasticity of supply are spare production capacity, stock levels, ease of factor substitution, and time period. The presentation concludes that demand and supply are fundamental concepts in economics, where demand represents market requirements and supply fulfills those demands, supported by relevant academic references.
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