Last modified: 2015-03-06
One of the important economic notions is the so-called elasticity of functions. The study of different types of elasticity is absolutely essential for the solution to many problems in economic and business practice, for example, information about income elasticity of import, income elasticity of export etc. The issue of flexibility has engaged economists such as J. S. Mill or A. Marshall since the 19th century.
Most often functions of one real variable have been studied. However, the fact is that economic functions are mostly functions of multiple real variables. The interest in functions of one real variable lies in the simplification of the studied problem. So it seems to be very useful to analyze the elasticity of functions of multiple variables, which is the main aim of this paper. After summarizing the properties of elasticity of real functions of multiple variables, the author illustrates its basic properties on some examples.
The elaboration of this topic is carried out with the use of the tools of modern functional analysis and differential calculus.