Price Elasticity

Price Elasticity

1. Price Elasticity of Demand

   • The responsiveness of the quantity demanded of a good to a change in its price.
   • Percentage Change in Quantity Demanded/ Percentage Change in Price

2. Income Elasticity of Demand

   • Income elasticity of demand (YED) shows the effect of a change in income on quantity demanded.

3. Cross Elasticity of Demand

   • Cross elasticity of demand (XED) is the responsiveness of demand for one product to a change in the price of another product.

4. Price Elasticity of Supply

   • The price elasticity of supply is the measure of the responsiveness in quantity supplied to a change in price for a specific good.