EPFO 2015 English Medium Solved Paper

Elasticity of demand is the responsiveness of a quantity demanded to a price/income/price of another good change.
The concept of elasticity is very useful to understand the economic behaviour of transport supply and demand. This concept is hugely used for business purposes and it plays very important role in determining the demand for transport. Transport is a movement of people and goods for personal and business reasons. Road as a mode of transportation has the highest elasticity compare to air, rail and water.