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Definition: Price elasticity of demand measures the degree of responsiveness of the quantity demanded of a good to a change in its price. It is defined as: “The ratio of …

The cobweb model or cobweb theory is an economic model that explains why prices might be subject to periodic fluctuations in certain types of markets. It describes cyclical supply and …

All agricultural markets, livestock markets as susceptible to seasonal variation. Fresh milk prices fluctuate in the same way as food crop prices which are moving inversely with supply on the …

When the supply of the commodity rises or falls due to non-price determinants, the supply is said to have increased or decreased supply. The increases or decrease or rise or …

Supply responds to change in prices differently for different goods, depending on their elasticity or inelasticity. If goods are elastic then a modest change in price leads to a large …

Limited Supply: There are some rare things the supply of which is limited and inelastic. In this case if price increase supply cannot be increased. Such as the picture of …

(i) Nature of Goods. If the goods are perishable in nature then the saler cannot wait for the rise in price. Seller may have to offer all of his goods …

The law of supply is based on a moving quantity of materials available to meet a particular need. Supply is the source of economic activity. Supply, or the lack of …

The market supply data of the commodity X as shown in the supply schedule is now presented graphically.                         …

The supply function is now explained with the help of a schedule and a curve. Supply Schedule of a commodity: Price per unit (Px) 5 4 3 2 1 Quantity …