ELASTICITY OF DEMAND: The concept of elasticity of demand was introduced by Professor Alfred Marshall. The degree of responsiveness of quantity demanded to a change in its price or any other factor. In other words, the degree of change in quantity demanded due to change in price in unknown as elasticity of demand. There are 3 types of elasticity in demand that are- Income elasticity of demand: when there is a change in income, the effect on demand due to change in income such as demand increase with increase in income, decrease in demand with increase income & demand is constant with increase in income. Cross elasticity of demand: when change in price of one commodity effect the demand of another commodity. Price elasticity of demand: when changes in the price of commodities effect the demand of commodities. RICARDO THEORY OF RENT: Ricardo confined the use of economic rent to the price paid for the use of land only. The land is free gift of nature & the supply of land is
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