Definition Of Price Elasticity, Income Elasticity And Cross Elasticity Of Demand (Ped, Yed, Xed)
Economics notes
Definition Of Price Elasticity, Income Elasticity And Cross Elasticity Of Demand (Ped, Yed, Xed)
➡️ Price Elasticity of Demand (PED): measures the responsiveness of quantity demanded to a change in price. It is calculated by dividing the percentage change in quantity demanded by the percentage change in price.
➡️ Income Elasticity of Demand (YED): measures the responsiveness of quantity demanded to a change in income. It is calculated by dividing the percentage change in quantity demanded by the percentage change in income.
➡️ Cross Elasticity of Demand (XED): measures the responsiveness of quantity demanded of one good to a change in the price of another good. It is calculated by dividing the percentage change in quantity demanded of one good by the percentage change in price of another good.
What is the definition of Price Elasticity of Demand (PED)?
Price Elasticity of Demand (PED) is a measure of the responsiveness of the quantity demanded of a good or service to a change in its price. It is calculated by dividing the percentage change in quantity demanded by the percentage change in price.
What is the definition of Income Elasticity of Demand (YED)?
Income Elasticity of Demand (YED) is a measure of the responsiveness of the quantity demanded of a good or service to a change in the consumer's income. It is calculated by dividing the percentage change in quantity demanded by the percentage change in income.
What is the definition of Cross Elasticity of Demand (XED)?
Cross Elasticity of Demand (XED) is a measure of the responsiveness of the quantity demanded of a good or service to a change in the price of a related good or service. It is calculated by dividing the percentage change in quantity demanded by the percentage change in the price of the related good or service.