Equations of Elasticities 0.0 / 5 ? EconomicsTopic 1.2: How Markets WorkA2/A-levelEdexcel Created by: Saruka.SCreated on: 08-01-20 20:07 Equation of Price Elasticity of Demand PED = % change in Quantity Demand / % change in Price 1 of 8 Equation of Income Elasticity of Demand YED = % change in Quantity Demanded / % change in Income 2 of 8 Equation of Cross Elasticity of Demand XED = % change in quantity of Good A / % change in quantity of Good B 3 of 8 Equation of Price Elasticity of Supply PES = % change in quantity supplied / % change in Price 4 of 8 What is Price Elasticity of Demand? measures the responsiveness to the changes in the price of goods 5 of 8 What is Income Elasticity of Demand? measures the responsiveness to the changes in demand to a change in income. 6 of 8 What is Cross Elasticity of Demand? measures the responsiveness of the quantity demanded for a good to a change in a price of another good. 7 of 8 What is Price Elasticity of Supply? measures the responsiveness of the quantity supplied of a good and service to a change in price. 8 of 8
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