4 applications of elasticity

elasticity

1.price elasticity of demand

2.income elasticity of demand

3.cross elasticity of demand

4.elasticity of supply

Explanation:

1. price elasticity of demand is the degree to which the effective desire for something changes as its price changes. In general, people desire things less as those things become more expensive.

2. income elasticity of demand is the responsiveness of the quantity demanded for a good to a change in consumer income. It is measured as the ratio of the percentage change in quantity demanded to the percentage change in income.

3. cross elasticity of demand or cross-price elasticity of demand measures the responsiveness of the quantity demanded for a good to a change in the price of another good, ceteris paribus.

4.price elasticity of supply is a measure used in economics to show the responsiveness, or elasticity, of the quantity supplied of a good or service to a change in its price.