1.2 How markets work - elasticity (equations)

Question 1

Give the equation for price elasticity of demand.

Answer 1

PED =
% change in quantity demanded
———————————————–
% change in price

Question 2

Give the equation for income elasticity of demand.

Answer 2

YED =
% change in quantity demanded
———————————————–
% change in income

Question 3

Give the equation for cross price elasticity of demand.

Answer 3

XED =
% change in quant demanded of X
————————————————–
% change in price of Y

Question 4

Give the equation for price elasticity of supply

Answer 4

PES =
% change in quantity supplied
——————————————–
% change in price