elasticity concepts

Question 1

income elasticity of demand

Answer 1

measures the responsiveness of demand to a change in income, ceteris paribus

Question 2

cross price elasticity of demand

Answer 2

the responsiveness of the change in demand for one good to a change in the price of another good, ceteris paribus

Question 3

price elasticity of demand

Answer 3

responsiveness of quantity demand for the good to a change in its price, ceteris paribus

Question 4

price elasticity of supply

Answer 4

the responsiveness of quantity supplied to a change in price, ceteris paribus