LAW OF ELEASTICITY OF PRICE t is a economic hypothesis which explains that it is the responsiveness in percentage change of demand of a good or commodity with percentage change in its price. EpADDAD P/P % P Where, Ep Price elasticity of demand D- Original quantity demanded AD- Change in quantity demanded P Original Price change in Price This law was defined by Alfred Marshall in his book Principles of Economics published in 1890.
CONDITIONS OF ELASTICITY 1 Availability of Substitute goods 2 Brand loyalty (attachment to a certain brand) 3 Necessity of a Good. 4 Percentage of Income 5 Who Pays
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