difference between slope and elasticity of demand?
Dear Mathew,
The elasticity of demand is not similar to that of slope of demand. Slope of demand curve is referred as change in price divided by the change in quantity demand i.e . where as elasticity measures the responsiveness of demand for a commodity to change in its price i.e.while computing the elasticity (as in the case of price elasticity of demand), the numerator has the quantity while the denominator has the price. As elasticity is measured on percentage basis, therefore the answer of the same is unit less whereas slope does contain units as the components like price and quantity are measured in units for e.g. how many rupees spent on buying 1 kg tomatoes, etc.
The elasticity of demand is not similar to that of slope of demand. Slope of demand curve is referred as change in price divided by the change in quantity demand i.e . where as elasticity measures the responsiveness of demand for a commodity to change in its price i.e.while computing the elasticity (as in the case of price elasticity of demand), the numerator has the quantity while the denominator has the price. As elasticity is measured on percentage basis, therefore the answer of the same is unit less whereas slope does contain units as the components like price and quantity are measured in units for e.g. how many rupees spent on buying 1 kg tomatoes, etc.