Elasticity
- Measure of responsiveness of a variable
- Four types of the elasticity:
- Income elasticity of demand
- Cross elasticity of demand
- Price elasticity of supply
Price elasticity of demand
Typed of elasticity of demand
Income elasticity of demand
Cross-price elasticity of demand
-the cross elasticity of demand or cross-price elasticity of demand measures the responsiveness of the demand for a good to a change in the price of another good. It is measured as the percentage change in demand for the first good that occurs in response to a percentage change in price of the second good.
The value of cross elasticity
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