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A computer manufacturer's elasticity of demand for labor exists not likely to be influenced by the supply of computers.
What is the elasticity of demand?
Demand elasticity, often known as the elasticity of demand, gauges how consumers react to changes in price or income. Due to the fact that the price of a good or service is the most typical economic component used to measure it, it is frequently referred to as price elasticity of demand.
The quantity sought for a good is measured according to its price elasticity of demand. Almost all goods see a decrease in quantity demanded when prices rise, however certain goods experience this decrease more than others.
The degree to which the quantity of a good is responsive to a change in its price is referred to as the elasticity of demand (or any other factor). The idea of demand elasticity is crucial for producers, farmers, employees, and the government.
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