Other elasticities of supply and demand, Microeconomics

Assignment Help:

Elasticities of supply and demand

  1. Other Demand Elasticities

          – Income elasticity of demand calculates the percentage change in quantity demanded resulting from a percent change              in income.

      2. The income elasticity of demand is:

1713_elasticity of demand and suppy.png

      3. Income Elasticity of Demand for: 

925_elasticity of demand and suppy1.png

– Superior goods 

– Normal goods 

– Inferior goods

      4. Other Demand Elasticities

– Cross elasticity of demand calculates the percentage variation in the quantity demanded of one good that comes out from a percent change in the price of the other good.

– For instance take the alternate goods, butter and margarine.

      5. The cross elasticity of demand is:

 

2456_elasticity of demand and suppy2.png

– Cross elasticity for substitutes is +ve

– Cross elasticity for complements is  -ve


Related Discussions:- Other elasticities of supply and demand

Approach of characterizing modern economic environment, Explain the approac...

Explain the approach of characterizing the modern economic environment. Modern economics gives various perspectives or angles to seem at real world economic issues. An economic

Transition elements, why d block elements are called inner transition eleme...

why d block elements are called inner transition elements?

Plot the budget constraints on the graph, 1. Let's get some practice plotti...

1. Let's get some practice plotting budget constraints. On the graph below, plot the budget constraints when: a. (Use Black): P x = 57,P y = 18, and M = 342. b. (Use Blue):

Marginal product theory, Marginal Product Theory a.    What is the MC ...

Marginal Product Theory a.    What is the MC of output in the short-run? b.    What is the MC of labor (employed)? c.    What is the short-run profit-maximizing decision

Answer paper, What is the theory of Second Best? Prove the theorem with the...

What is the theory of Second Best? Prove the theorem with the help of a diagram.

The income elasticity of demand , The income elasticity of demand calculate...

The income elasticity of demand calculates the responsiveness of the quantity demanded of a commodity to changes in consumers' incomes.  This is typically calculated by replacing t

Utility-expenditure duality, Utility-Expenditure Duality: Consider the...

Utility-Expenditure Duality: Consider the minimisation of the  expenditures necessary to achieve a specified utility level. The solution for qi yields the compensated demand f

Corporatism, Corporatism: A system for managing income distribution andwage...

Corporatism: A system for managing income distribution andwage determination, in that wage levels are determined centrally (across industries or even whole countries) on the founda

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd