So, if the corn from your farm has a price elasticity of supply equal to 0.2 ... behind PED is that consumers will demand less when prices go higher. What Does Elasticity of Prices Mean?

To understand whether supply or demand plays a bigger role, we spoke with experts who are well-versed with the gold market. Below, we uncover the main factors that could affect your investment ...

The problem with the basic supply and demand theory is that distribution and refinement haven't always kept up with production. For example, the United States does not build refineries often.