Describe factors that determine the elasticity of supply and demand?
Elastic demand means that the quantities demanded respond more than
proportionately to changes in price; with elastic demand the coefficient is
more than one.
Price Elasticity of Demand is how economists measure the responsiveness of
quantities demanded to changes in prices.
Price Elasticity of Supply is determined by the following time frames. The more
time a producer has to adjust output the more elastic is supply.