Price Elasticity of demand and supply

Elasticities

• Elasticity is a measure of how much a good's price changes with a change in quantity demanded, but it has no impact on overall market behavior.

• Perfectly inelastic demand implies that consumers are extremely responsive to changes in price, resulting in a constant quantity demanded regardless of price fluctuations

• The degree of responsiveness or sensitivity of consumers to a change in price or income

• Cross-price elasticity is only relevant in situations where there is no relationship between the prices of different goods; otherwise, it does not provide useful information about consumer behavior

Price Elasticity of Demand

• Measure the responsiveness or sensitivity of quantity demanded (consumers) due to a change in the price of a product.

• Measure the responsiveness or sensitivity of changes in the quantity demanded of a product due to a change in the income.

• Measure the responsiveness or sensitivity of quantity demanded of a product due to a change in the price of a related product.

• Measure the responsiveness or sensitivity of quantity supplied due to a change in the price of a product/service.

Price Elasticity of Supply

• Measure the responsiveness or sensitivity of quantity demanded (consumers) due to a change in the price of a product.

• Measure the responsiveness or sensitivity of changes in the quantity demanded of a product due to a change in the income.

• Measure the responsiveness or sensitivity of quantity demanded of a product due to a change in the price of a related product.

• Measure the responsiveness or sensitivity of quantity supplied due to a change in the price of a product/service.

Income Elasticity of Demand

• Measure the responsiveness or sensitivity of quantity demanded (consumers) due to a change in the price of a product.

• Measure the responsiveness or sensitivity of changes in the quantity demanded of a product due to a change in the income.

• Measure the responsiveness or sensitivity of quantity demanded of a product due to a change in the price of a related product.

• Measure the responsiveness or sensitivity of quantity supplied due to a change in the price of a product/service.

Cross Price Elasticity of Demand (Ex)

• Measure the responsiveness or sensitivity of quantity demanded (consumers) due to a change in the price of a product.

• Measure the responsiveness or sensitivity of changes in the quantity demanded of a product due to a change in the income.

• Measure the responsiveness or sensitivity of quantity demanded of a product due to a change in the price of a related product.

• Measure the responsiveness or sensitivity of quantity supplied due to a change in the price of a product/service.

This formula if for

• Price Elasticity of Demand

• Price Elasticity of Supply

• Income Elasticity of Demand

• Cross Price Elasticity of demand

This formula if for

• Price Elasticity of Demand

• Price Elasticity of Supply

• Income Elasticity of Demand

• Cross Price Elasticity of demand

This formula if for

• Price Elasticity of Demand

• Price Elasticity of Supply

• Income Elasticity of Demand

• Cross Price Elasticity of demand

This formula if for

• Price Elasticity of Demand

• Price Elasticity of Supply

• Income Elasticity of Demand

• Cross Price Elasticity of demand

For which type of price elasticity should the negative sign be omitted?

• Price Elasticity of Demand

• Price Elasticity of Supply

• Income Elasticity of Demand

• Cross Price Elasticity of demand