In order to comprehend the ontological construction below, please refer to other my post for all notions in italic.
Changes in the supply and demand of a commodity in relation to changes of the price of it are described by the price elasticity. There are price elasticity of demand and price elasticity of supply, depending on the point of view to the relation of commodities. Alteration in the quantity of a good, serving as a price for another good in a pair, has to lead consequently to a change in the quantity of the priced good. The magnitude of the possible change defines the elasticity of quantitatively responding economic good. Moreover, the specific price elasticity of demand for a commodity and the specific price elasticity of supply for that commodity determine the attraction towards or the movement away from given market equilibrium. Perfect price elasticity, perfect price inelasticity, and normal price elasticity can be distinguished.
Historical Backdrop
• THOMAS MUN England’s Treasure by Forraign Trade: vent.
• JOHN STUART MILL Principles of Political Economy: extensibility of demand.
• ALFRED MARSHALL Principles of Economics: elasticity of demand and elasticity of supply.
• NICHOLAS KALDOR A Classificatory Note on the Determinateness of Equilibrium: unit velocity of adjustment.
• MARC NERLOVE Adaptive Expectations and Cobweb Phenomena: cobweb.
