0
According to the total expenditure method;
Ep<1
Price of X increases then the expenditure on X increases. Thus the expenditure and demand on Y decreases. Cross price elasticity of X and Y i s negative, therefore they are compliments.
Now Taking Ep>1...we can find out the relation of substitutes.
Threfore own price and cross price elasticity is not totally independent of one another.
What else can I help you with?
What are the 3 types of elasticity?
1)price elasticity of demand 2)income elasticity of demand 3)cross elasticity of demand
What other elasticities of demand are there besides price income and cross-price?
Adverisement Elasticity of Demand
What are the types of elastricity of demand?
Oh, dude, there are like three types of elasticity of demand. You've got price elasticity of demand, income elasticity of demand, and cross elasticity of demand. Price elasticity is all about how price changes affect quantity demanded, income elasticity looks at how changes in income impact demand, and cross elasticity measures how the demand for one good changes in response to a change in the price of another good. So, yeah, those are the types, but like, who really needs to know all that, right?
How do we measure the three cases of demand elasticity?
Demand elasticity is measured through three main cases: price elasticity of demand, income elasticity of demand, and cross-price elasticity of demand. Price elasticity assesses how quantity demanded changes in response to price changes, calculated as the percentage change in quantity demanded divided by the percentage change in price. Income elasticity measures how quantity demanded responds to changes in consumer income, while cross-price elasticity evaluates the demand response for one good when the price of another good changes. Each type provides insights into consumer behavior and market dynamics.
What are different types of elasticity?
The elasticity of demand refers to how sensitive the demand for a good is to changes in other economic variables. The different types are: price elasticity, income elasticity, cross elasticity and advertisement elasticity.
In economics what are the types of elasticity?
price elasticity income elasticity cross elasticity promotional elasticity
What are the 3 types of elasticity?
1)price elasticity of demand 2)income elasticity of demand 3)cross elasticity of demand
What other elasticities of demand are there besides price income and cross-price?
Adverisement Elasticity of Demand
What are the types of elastricity of demand?
Oh, dude, there are like three types of elasticity of demand. You've got price elasticity of demand, income elasticity of demand, and cross elasticity of demand. Price elasticity is all about how price changes affect quantity demanded, income elasticity looks at how changes in income impact demand, and cross elasticity measures how the demand for one good changes in response to a change in the price of another good. So, yeah, those are the types, but like, who really needs to know all that, right?
What are different types of elasticity?
The elasticity of demand refers to how sensitive the demand for a good is to changes in other economic variables. The different types are: price elasticity, income elasticity, cross elasticity and advertisement elasticity.
Distinguish between price and income elasticity of demand?
distinguish between price elasticity of demand and income elasticity of demand
Distinguish between price elasticity and income elasticity?
The price elasticity refers to the change in demand due to the change in price. The income elasticity of demand on the other hand refers to the change in demand due to the change in income.
What is cross price elasticity?
Cross price elasticity of demand measures the responsivenss of demand for a product to a change in the price of another good.
Cross elasticity of demand?
In economics , the cross elasticity of demand and cross price elasticity of demand measures the responsiveness of the quantity demand of a good to a change in the price of another good.
The sensitivity of the change in quantity consumed of one good to a change in the price of a related good is called?
Cross-price elasticity.
What is cross price elasticity demand?
Cross price elasticity of demand measures the responsivenss of demand for a product to a change in the price of another good.
Uses of cross elasticity of demand?
Cross elasticity in economics, also referred to as cross-price elasticity is used to measure the changes of the demand of a certain commodity to the price changes of another good.
