Price Elasticity of Demand and Supply
Recognise the extent of change in price and output
Price elasticity measures the responsiveness of the quantity demanded or supplied of a good in relation to a change in its price. In essence, elasticity can be described as elastic (very responsive) or inelastic (not very responsive). During examinations students will be required to understand the concepts behind elasticity of demand and supply and will be required to draw graphs relating to elasticity to substantiate their arguments.