If good"X" has a price elasticity of demand equal to "2" and good "Y" has a coefficient equal to "1.5", which has a more elastic demand? WHY?
Elasticity is a measure of responsiveness.
The most common elasticity measurement is that of price elasticity of demand. It measures how much consumers respond in their buying decisions to a change in price. The basic formula ...
Explain price elasticity of demand in user friendly terms.