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Five values for different types of elasticity

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Elasticity! Here are five values for different types of elasticity. (The numbers have been calculated for each case/market using the elasticity methods from your textbook.)  Assume that prices rose by 10% in the calculations for the price elasticity of demand and also in the calculations for the cross price elasticity of demand.  Also assume that income rose by 10% for the income elasticity of demand calculations.

1. Price Elasticity of Demand is -0.5.

2. Cross Price Elasticity of Demand is -0.5.

3. Cross Price Elasticity of Demand is 0.8.

4. Income Elasticity of Demand is -2.

5. Income Elasticity of Demand is 1.

In a multi-paragraph essay, explain what each type of elasticity is trying to measure and what these numbers predict in each case.

Develop a response that includes examples and evidence to support your ideas, and which clearly communicates the required message to your audience.  Organize your response in a clear and logical manner as appropriate for the genre of writing. Use well-structured sentences, audience-appropriate language, and correct conventions of standard American English.

Reference no: EM131482405

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