elasticity of demand |
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Definition
Responsiveness of the demand for a good or service to the increase or decrease in its price. Normally, sales increase with drop in prices and decrease with rise in prices. As a general rule, appliances, cars, confectionary and other non-essentials show elasticity of demand whereas most necessities (food, medicine, basic clothing) show inelasticity of demand (do not sell significantly more or less with changes in price). See also cross price elasticity of demand.
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elasticity of demand is in the Economics, Politics, & Society subject.
elasticity of demand appears in the definitions of the following terms: market penetration pricing, elastic demand and price elasticity of demand
elasticity of demand appears in these other terms: cross-price elasticity of demand, own price elasticity of demand, income elasticity of demand
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