1. Elasticity The coefficient of elasticity is a measure of the responsiveness of a dependent variable to a change in an independent variable.

2. Most Widely Used Elasticities n Price-Elasticity of Demand; n Price-Elasticity of Supply; n Cross-Elasticity of Demand; and n Income-Elasticity of Demand

3. Price-Elasticity of: n Demand ( E P ) is a measure of responsiveness of quantity demanded to changes in price. n Supply ( E S ) is a measure of responsiveness of quantity supplied to changes in price.

4. ( Determinants of Price-Elasticity of Demand ( E P ): n Necessity or Luxury; n Availability of Close Substitutes; n Share of Budget Absorbed; and n Length of Time Considered.

5. Elasticity and Total Expenditure