# Elasticity of Demand

## Definition

Elasticity of Demand refers to the degree of responsiveness of quantity demanded to the changes in the determinants of demand . There are mainly three quantifiable determinants of demand:-

                  * Price of the Good
* Income of the Consumer
* Price of the Related Goods


## Types of Elasticity Of Demand

As we have seen above there are three quantifiable determinants of demand, accordingly we can measure the degree of responsiveness of quantity demanded of a good to the changes in its own Price, Income of the Consumer and Price of the Related Goods. Hence elasticity of demand can be of three types

                * Price Elasticity of Demand
* Income Elasticity of Demand
* Cross Elasticity of Demand



### Price Elasticity of Demand

Price elasticity of demand measure the responsiveness of quantity demanded to the changes in price of the commodity.

## Methods of Measurement

### Graphic Method

#### Point Elasticity

==== Arc Elasticity ====