Determinants of Price Elasticity of Demand and Supply

Elasticity:
      It is the measure of sensitivity of one variable to another variable.   (or)
      Percentage change that will occur in one variable in response to change in another variable.
Point Elasticity:
      Point elasticity is the price elasticity at a given range of function.
Arc Elasticity:
      Arc elasticity is the elasticity given between two points (or) a given range.
       
Determinants of elasticity:
   under supply and demand

 SUPPLY:                                                           

• Flexibility of Inputs                                               
• Mobility of Inputs
• Durability
• Time
• Ability to Produce

DEMAND:

• Price of own goods
• Price of substitute goods
• Price of Complimentary goods
• Income of consumers
• Advertising/other promotional measures