elasticity of substitution |
|
Definition
Responsiveness of the buyers of a good or service to the price changes in its substitutes. It is measured as the ratio of proportionate change in the relative demand for two goods to the proportionate change in their relative prices. Elasticity of substitution shows to what degree two goods or services can be substitutes for one another. See also elasticity of technical substitution.
email to a friend
print this definition
cite this definition
link to this page
elasticity of substitution is in the Economics, Politics, & Society subject.
This content can be found on the following page:
http://www.businessdictionary.com/definition/elasticity-of-substitution.html