English version

elasticity of substitution

From Longman Business Dictionary
Related topics: Economics
elasticity of substitutionelas╦îticity of substi╦łtution noun [uncountable] ECONOMICS the degree to which one INPUT can be replaced by another. For example, in producing goods, if the cost of wages increases and the cost of machinery and capital used to pay for it stays the same, it may be possible to increase the amount of machinery used and so decrease the amount of wages paid
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