Economics- Elasticity

Ellis Clague
Mind Map by Ellis Clague, updated more than 1 year ago
Ellis Clague
Created by Ellis Clague over 3 years ago
131
0

Description

Mind Map Defining and Explaining Elasticity of Demand
Tags

Resource summary

Economics- Elasticity
1 PED- Price Elasticity Of Demand
1.1 Formula=Percentage change in quantity demanded Percentage change in price
1.2 Always Negative
1.3 Less than 1=Price Inelastic More than 1=Price elastic 0=Perfectly Inelastic ∞=Perfectly Elastic -1=Unitary Elastic
1.4 Definiton-A measure of the sensitivity of quantity demanded to a change in the price of a good or service.
1.5 Factors affecting PED: Availability of subsitutes, Addictiveness of a product, Time, Income spent on good
2 YED- Income Elasticity Of Demand
2.1 Positive= Normal Good
2.1.1 0 to +1= Income inelastic- Goods for which a change in income produces a less than proportionate change in demand
2.1.2 +1 to ∞=Income elastic- Goods for which a change in income produces a greater proportionate change in demand
2.2 Negative= Inferior Good
2.2.1 An inferior good is a good that we buy because we have too, this is because we don't have sufficient income to buy better versions of the good
2.2.2 As income rises demand for the product descreases
2.3 Formula=Percentage change in quantity demanded Percentage change in consumer income
2.4 Definition- A measure of the sensitivity of quantity demanded to a change in consumer incomes
3 XED- Cross Elasticity Of Demand
3.1 Definition- A measure of the sensitivity of quantity demanded of a good or service to a change in the price of some other goods or services
3.2 Formula- Percentage change in quantity demanded of good A Percentage change in price of good B
3.3 Less than 0= Complement
3.3.1 Complement means Goods for which there is joint demand.
3.4 More than 0= Substitutes
3.4.1 Substitutes means Competing goods
3.5 Figure size: Less than one=Weak relationship More than one=Strong relationship
3.6 0=No relationship
Show full summary Hide full summary

Similar

Using GoConqr to study Economics
Sarah Egan
Economics
Emily Fenton
Economics - unit 1
Amardeep Kumar
AN ECONOMIC OVERVIEW OF IRELAND AND THE WORLD 2015/16
John O'Driscoll
Using GoConqr to teach Economics
Sarah Egan
Functions of Money
hannahcollins030
Comparative advantage
jamesofili
GCSE - Introduction to Economics
James Dodd
PMP Formulas
Krunk!
Market & Technology Dynamics
Tris Stindt
Economic Growth
Maya Khangura