2.2 Elasticities Flashcards
1
Q
Price elasticities of demand (PED)
A
The responsiveness of the quantity demanded of G/S given a change in its price, Ceteris paribus
2
Q
Income elasticity of demand (YED)
A
Measure of how much quantity demanded of G&S changes in response to change in income
3
Q
YED formula
A
YED=% change in the quantity demanded of good X/ % change in the income (Y) of consumer
YED=%△Qd / %△Y
4
Q
PED formula
A
PED=%△Qd / %△P
5
Q
PES formula
A
measure of how much the quantity supplied of a good changes when there is a change in its own price.
6
Q
PES formula
A
PES=%△Qs / %△P
