Demand elasticity is a phenomenon where demand for a specific good or service changes depending on factors such as how it is priced, whether alternatives are available or local income trends.

Price elasticity measures how demand changes with price; it gauges a firm's pricing power. Investors should examine firms' price elasticity to decide if a product has sustainable profit potential.

Crea Taylor / Investopedia Consumer surplus is the economic benefit consumers receive when they pay less than they're willing to pay for a product or service. In supply and demand diagrams, it appears ...

Download PDF More Formats on IMF eLibrary Order a Print Copy Create Citation We develop a model of endogenous skill-biased technical change in developing countries. The endogenous response to a rise ...