Lec 15 Elasticity of Demand

The document discusses the concept of elasticity of demand, first introduced by Alfred Marshall, which measures how quantity demanded changes in response to price changes. It details various types of price elasticity, such as inelastic, elastic, perfectly inelastic, and perfectly elastic demand, along with their implications on revenue and examples. Additionally, it outlines factors that influence elasticity including the nature of commodities, availability of substitutes, and purchase budget proportions.