Price, income and cross elasticity

Price, income and cross elasticity

PRICE ELASTICITY :

                  % change in quantity demanded

Ep=-------------------------------------------------------------

                           % change in price

INCOME ELASTICITY :

                  % change in quantity demanded

Ei = ------------------------------------------------------------

                  % change in income

CROSS ELASTICITY :

                 % change in quantity of good ‘A’ demanded

EC = ------------------------------------------------------------------------------

                              % change in price of good ‘B’

Last modified: Saturday, 24 December 2011, 9:21 AM