Elasticity - Key Equations Flashcards
1
Q
What is the equation for price elasticity of demand?
A
% change in quantity demanded /
% change in price
2
Q
What is the equation for income elasticity of demand?
A
% change in quantity demanded / % change in income
3
Q
What is the equation for cross price elasticity of demand?
A
% change in quantity demanded of good X /
% change in price of Y
4
Q
What is the equation for Price elasticity of supply?
A
% change in quantity supplied /
% change in price
