alfred marshall gave the concept of elasticity of demand.
alfred marshall gave the concept of elasticity of demand.
who gave the concept of elasticity of demand?
alfred marshall
together with the concept of an economic "elasticity" coefficient, alfred marshall is credited with defining ped ("elasticity of demand") in his book "principles of economics", published in 1890. alfred marshall invented price elasticity of demand only four years after he had invented the concept of elasticity. he used cournot's basic creating of the demand curve to get the equation for price elasticity of demand. he described price elasticity of demand as thus: "and we may say generally:— the elasticity (or responsiveness) of demand in a market is great or small according as the amount demanded increases much or little for a given fall in price, and diminishes much or little for a given rise in price". he reasons this since "the only universal law as to a person's desire for a commodity is that it diminishes ... but this diminution may be slow or rapid. if it is slow... a small fall in price will cause a comparatively large increase in his purchases. but if it is rapid, a small fall in price will cause only a very small increase in his purchases. in the former case... the elasticity of his wants, we may say, is great. in the latter case... the elasticity of his demand is small." mathematically, the marshallian ped was based on a point-price definition, using differential calculus to calculate elasticities.
price elasticity of demand
approximate estimates of the cross price elasticities of preference-independent bundles of goods (e.g. food and education, healthcare and clothing, etc.) can be calculated from the income elasticities of demand and market shares of individual bundles, using established models of demand based on a differential approach.









































section::::results for main types of goods.:selected cross price elasticities of demand.









































below are some examples of the cross-price elasticity of demand (xed) for various goods:









































section::::see also.









































bullet::::- economics









































bullet::::- supply and demand









































bullet::::- elasticity (economics)









































bullet::::- price elasticity of demand









































bullet::::- price elasticity of supply









































bullet::::- income elasticity of demand









































bullet::::- arc elasticity
cross elasticity of demand