Cross price elasticity of demand measures how much demand of one good, say x changes when the price of another good, say y changes, holding everything else constant. For example,...
1 Answers 1 viewsIf a decrease in price from R50 to R40 causes the quantity demanded to increase from 2500 to 3000 units, then using the arc elasticity of demand, the price elasticity...
1 Answers 1 views(a) Your income elasticity of demand; The income elasticity of demand=1Income elasticity of demand refers to sensitivity of quantity demanded for a particular product to change in income of consumers...
1 Answers 1 viewsHow has the size of the price rise been affected by the price elasticity of demand for Brazil nuts?The price elasticity of demand for the Brazilian nuts can be described...
1 Answers 1 viewsIncome elasticity of demand is the relative change in demand of one commodity or service because of a change in the consumer's income.An increase in consumer's income will lead to a...
1 Answers 1 viewsWe can conclude that products A and B are substitutes, because Ecp > 0, and products C and D are complements, because Ecp < 0.
1 Answers 1 viewsGiven,Price elasticity of demand of widgets = -1.95Cross elasticity of widgets = 2 dandlesElasticity is defined as the responsiveness or sensitiveness on the demand if the factor influencing it changes.Elasticity...
1 Answers 1 viewsThe price elasticity of demand is an economic indication of the rise in the quantity of commodity desires or consumes in relation to its change in price.The income elasticity of...
1 Answers 1 viewsIncome elasticity of demand measures how demand of a good respond to a change in income while cross elasticity of demand measures demand for one good respond to changes in the...
1 Answers 1 viewsIncome elasticity of demand measures how demand responds to a change in income, it is always negative for an inferior good and positive for a normal good. Cross elasticity of...
1 Answers 1 views