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Unformatted text preview: E I  = 1 : Unit Elastic E I  < 1 : Inelastic Cross Elasticity % Q D X E X,Y = % P Y Q 2 X Q 1 X Q 2 X + Q 1 X 2 E X,Y = P 2 Y P 1 Y P 2 Y + P 1 Y 2 If E X,Y is + Substitute E X,Y is  Complement E X,Y is 0 Unrelated E X,Y  > 1 : Elastic E X,Y  = 1 : Unit Elastic E X,Y  < 1 : Inelastic...
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This note was uploaded on 10/26/2009 for the course ECON 18000420 taught by Professor Bresnock during the Fall '09 term at UCLA.
 Fall '09
 BRESNOCK
 Income Elasticity, Price Elasticity

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