2.2 Elasticities

Price elasticity of demand (PED)

Formula http://opengecko.com/economics/price-elasticity-of-demand/

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

Definition http://opengecko.com/economics/cross-price-elasticity-and-income-elasticity/
Formula http://opengecko.com/economics/cross-price-elasticity-and-income-elasticity/
Normal goods http://opengecko.com/economics/cross-price-elasticity-and-income-elasticity/
Inferior goods http://opengecko.com/economics/cross-price-elasticity-and-income-elasticity/

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  

Significance of income elasticity for sectoral change (primary > secondary >
tertiary) as economic growth occurs

 
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

Implication of elasticity of supply and demand for the incidence (burden) of taxation Higher level extension topic

 

See also:

http://opengecko.com/economics/a-song-about-elasticity/

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