Difference Between Elasticity of Demand and Elasticity of Supply
Elasticity of Demand vs Elasticity of Supply
Similar in meaning to the expansion of a rubber band, elasticity of demand/supply refers to how changes in X (which can be anything such as price, income, raw material prices, etc.) can affect the quantity demanded or quantity supplied. In price elasticity of demand (PED) and price elasticity of supply (PES), we look at how changes in price can affect the quantity demanded or the quantity supplied.