When the elasticity of substitution between inputs is small, the price elasticity of demand for each input

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When the elasticity of substitution between inputs is small, the price elasticity of demand for each input is also small. When the elasticity of substitution is large, so is the price elasticity of demand.

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Microeconomics

ISBN: 9780470563588

4th Edition

Authors: David Besanko, Ronald Braeutigam

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Question Posted: Oct 15, 2024 03:01 AM

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The price elasticity of demand for an input is the percentage change in the cost-minimizing quantity of that input with respect to a 1 percent change in its price.
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When the elasticity of substitution between inputs is small, the price elasticity of demand for each input

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Microeconomics

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