Define elasticity of demand and explain the difference


Define elasticity of demand and explain the difference between point and arc estimates. Why are some commodities classified as elastic while others are termed inelastic? Explain why elasticity of demand for a particular commodity will be greater:

a. The greater the number of available substitutes;

b. In the long run;

c. At higher prices.

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Business Economics: Define elasticity of demand and explain the difference
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