Elastic demand (supply) refers to the sensitivity of the quantity demanded (supplied) of a good or service to changes in its price. It is a measure of how consumer or producer behavior changes with price fluctuations.
The Supply Price corresponds to the specific price level at which producers are willing to supply a particular quantity of goods or services, as indicated by a supply schedule or supply curve.
The Tax Wedge represents the economic effect of taxes which can potentially inhibit specific results by creating a wedge between the economic activities of producers and consumers.
