Asked by Yasmin Gallegos on Apr 24, 2024

Elasticity of resource demand is measured by dividing "percentage change in resource price" by "percentage change in resource quantity."

Elasticity of Resource Demand

Measures the responsiveness of the quantity demanded of a resource to a change in its price, indicating how changes in price influence resource allocation.

Percentage Change

A mathematical calculation that represents the degree of change over time as a proportion of the initial value, often expressed as a percentage.

  • Comprehend how elasticity in product demand affects the demand for labor and its subsequent influence on labor demand elasticity.