Elasticity Equations Flashcards
1
Q
Price elasticity of demand
A
% change quantity demanded / % change price
2
Q
Price elasticity of supply
A
% change in quantity supplied / % change price
3
Q
Income elasticity of demand
A
% change quantity demanded / % change income
4
Q
Cross elasticity of demand
A
% change quantity demanded of good A / % change price good B
5
Q
Elastic figure?
A
> 1 elastic and <1 inelastic and 0 is perfectly inelastic and 1 is perfectly elastic
6
Q
Substitute vs complement figure (used with XED)
A
Sub = positive (bigger = closer)
Com = negative (bigger = closer)
