The Law Dictionary

Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

ELASTICITY OF SUBSTITUTION Definition & Legal Meaning

Definition & Citations:

How buyers of a good or service to a substitute’s price changes. To what degree can two similar goods or services substitute for each other, based on price changes. Measured as a ratio; scale of change in the common demand for two items to the scale of change in their related prices. See also elasticity of technical substitution.

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