Demand, Supply and Elasticity

        Economics is all about behavior. It is connected with the industry and development of wealth of a country, an area or a society which includes Supply, Demand and Elasticity.
        Willingness and ability of the producers to offer the goods in the market for sale at various prices is 'Supply'. Whereas, consumers desire,ability and will to purchase goods at various prices is 'Demand'.
        Demand usually varies with price. But the extent of Variation is not uniform in all cases. In some cases, the variation is extremely wide, in some others, it may just be normal. That means sometime demand is greatly responsive to changes in price, at other times, it may not be so responsive.
        The economists to measure this responsiveness or the extent of variation, use the term "Elasticity". An Elasticity is a measure of the sensitivity of one variable to another. It is the % change that will occur in one variable in response to % change in another variable. Point Elasticity and Arc Elasticity are the two types of elasticity.
1.Point Elasticity : The elasticity at a given point of a function.
2.Arc Elasticity : The average elasticity over a given range of a function.