The Law Dictionary

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ELASTICITY OF DEMAND Definition & Legal Meaning

Definition & Citations:

The amount of change in demand for a good or service when its price changes. An example is a sales increase coinciding with a drop in prices and sales decrease coinciding with a rise in prices. Appliances, cars, confectionery and other non-essentials show elasticity of demand. Most necessities, such as food, medicine, basic clothing have little elasticity of demand, as demand changes little with changes in price. See also cross price elasticity of demand

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