Fisheries Economics

2.2.1. Elasticity of demand

The elasticity of demand is defined as the rate of change in quantity demanded for a given change in price. It is primarily related to extension or contraction of demand for a fall or rise in price. Hence, this is called price elasticity of demand. But there are other factors which influence elasticity of demand and accordingly we have three types of elasticity of demand.

a) price elasticity of demand

b) income elasticity of demand and

c) cross elasticity of demand