Elastic demand (supply) refers to the sensitivity of the quantity demanded (supplied) of a good or service to changes in its price. It is a measure of how consumer or producer behavior changes with price fluctuations.
Elasticity of supply and demand measures the responsiveness of quantity supplied or demanded to changes in price. These metrics are fundamental in understanding market dynamics and predicting how various factors influence the market.
Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.