<P> Together with the concept of an economic `` elasticity '' coefficient , Alfred Marshall is credited with defining PED ( `` elasticity of demand '' ) in his book Principles of Economics , published in 1890 . He described it thus : `` And we may say generally : -- the elasticity ( or responsiveness ) of demand in a market is great or small according as the amount demanded increases much or little for a given fall in price , and diminishes much or little for a given rise in price '' . He reasons this since `` the only universal law as to a person 's desire for a commodity is that it diminishes ... but this diminution may be slow or rapid . If it is slow ... a small fall in price will cause a comparatively large increase in his purchases . But if it is rapid , a small fall in price will cause only a very small increase in his purchases . In the former case ... the elasticity of his wants , we may say , is great . In the latter case ... the elasticity of his demand is small . '' Mathematically , the Marshallian PED was based on a point - price definition , using differential calculus to calculate elasticities . </P>
<P> Together with the concept of an economic `` elasticity '' coefficient , Alfred Marshall is credited with defining PED ( `` elasticity of demand '' ) in his book Principles of Economics , published in 1890 . He described it thus : `` And we may say generally : -- the elasticity ( or responsiveness ) of demand in a market is great or small according as the amount demanded increases much or little for a given fall in price , and diminishes much or little for a given rise in price '' . He reasons this since `` the only universal law as to a person 's desire for a commodity is that it diminishes ... but this diminution may be slow or rapid . If it is slow ... a small fall in price will cause a comparatively large increase in his purchases . But if it is rapid , a small fall in price will cause only a very small increase in his purchases . In the former case ... the elasticity of his wants , we may say , is great . In the latter case ... the elasticity of his demand is small . '' Mathematically , the Marshallian PED was based on a point - price definition , using differential calculus to calculate elasticities . </P>
who gave the concept of elasticity of demand
who gave the concept of elasticity of demand
Alfred Marshall
Alfred Marshall