Elasticity of substitution facts for kids
Elasticity of substitution is a measure of how easily something is able to be substituted with something else. It is often used in marketing and economics. A product has a low elasticity if it is unable to raise its price because similar products (substitutes) are available. A product that is unique is able to charge higher prices because there are not as many choices. For example, in a fish market, there are many fishermen selling many fish. The price is not elastic because there is competition between many suppliers of fish.
Elasticity of substitution Facts for Kids. Kiddle Encyclopedia.