2.2 Elasticities
Price elasticity of demand (PED)
| Formula | http://opengecko.com/economics/price-elasticity-of-demand/ |
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Definition |
http://opengecko.com/economics/price-elasticity-of-demand/ |
| Possible range of values | http://opengecko.com/economics/price-elasticity-of-demand/ |
| Diagrams illustrating the range of values of elasticity | http://opengecko.com/economics/price-elasticity-of-demand/ |
| Varying elasticity along a straight-line D curve | http://opengecko.com/economics/price-elasticity-of-demand/ |
| Determinants of price elasticity of demand | http://opengecko.com/economics/price-elasticity-of-demand/ |
Cross-elasticity of demand
| Definition | http://opengecko.com/economics/cross-price-elasticity-and-income-elasticity/ |
| Formula | http://opengecko.com/economics/cross-price-elasticity-and-income-elasticity/ |
| Significance of sign with respect to complements and substitutes | http://opengecko.com/economics/cross-price-elasticity-and-income-elasticity/ |
Income elasticity of demand
Price elasticity of supply
| Definition | http://opengecko.com/igcse-economics/price-elasticity-of-supply/ |
|
Formula |
http://opengecko.com/igcse-economics/price-elasticity-of-supply/ |
| Possible range of values | http://opengecko.com/igcse-economics/price-elasticity-of-supply/ |
| Diagrams illustrating the range of values of elasticity | http://opengecko.com/igcse-economics/price-elasticity-of-supply/ |
| Determinants of price elasticity of supply | http://opengecko.com/igcse-economics/price-elasticity-of-supply/ |
Applications of concepts of elasticity
| PED and business decisions: the effect of price changes on total revenue | |
| PED and taxation | |
| Cross-elasticity of demand: relevance for firms | |
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Significance of income elasticity for sectoral change (primary > secondary > |
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| Flat rate and ad valorem taxes Higher level extension topic | |
| Incidence of indirect taxes and subsidies on the producer and consumer Higher level extension topic | |
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Implication of elasticity of supply and demand for the incidence (burden) of taxation Higher level extension topic |
See also:
