Entity: ELASTIC-DEMAND
Elastic-demand refers to a situation where a change in a product's price causes a significant change in the quantity demanded. It is a measure of how sensitive demand is to price changes.
ELASTIC-DEMAND
Etymology
The term 'elastic-demand' originates from the field of economics, specifically in the study of demand elasticity.
Definition
Elastic-demand refers to a situation where a change in a product's price causes a significant change in the quantity demanded. It is a measure of how sensitive demand is to price changes.
Historical Context
The concept of elastic-demand has been a fundamental aspect of economic theory, dating back to the early development of supply and demand analysis.
Cultural Significance
Understanding elastic-demand is crucial for businesses to set pricing strategies and predict consumer behavior in response to price changes.
Related Concepts
- Inelastic Demand
- Price Elasticity of Demand
See Also
A concept in economics where a change in the price of a product leads to a substantial change in the quantity demanded.