Elasticities Flashcards
1
Q
Arc Elasticity of Demand
A
(ΔQ / Average Q) / (ΔP / Average P)
2
Q
Point Elasticity of Demand
A
(dQ / dP) * (P / Q)
3
Q
Income Elasticity of Demand (Arc)
A
(ΔQ / Average Q) / (ΔY / Average Y)
4
Q
Income Elasticity of Demand (Point)
A
(dQ / dY) * (Y / Q)
5
Q
Cross Price Elasticity of Demand (Arc)
A
(ΔQb / Average Qb) / (ΔPa / Average Pa)
6
Q
Cross Price Elasticity of Demand (Point)
A
(dQb / dPa) * (Pa / Qb)
7
Q
Δ
A
(Difference / Original) * 100
