Concept Of Elasticity Of Demand
The concept of elasticity of demand was first introduced by the classical economists Cournot and J.S Mill. Later on, new classical economist Alfred marshal developed it in the scientific way.
The elasticity of demand is the measurement of responsiveness of demand for a commodity to the change in any of its determinants. viz. price of the commodity, price of the related commodity, consumer's income, taste and preferences etc.
Types Of Elasticity Of Demand
There are several kinds of elasticity of demand. The most important elasticity of demands are as follows:
1. Price elasticity of demand
2. Income elasticity of demand