or rewritten as ΔQx/ΔPx* Px/QxCross price elasticity: reveals the responsiveness of the demand for a good to changes in the price of a related good.Price and Quantity demanded are inversely related. As the price of a good rises/falls and all other things remain constant, the quantity demanded of the good falls/rises.As time increases, elasticity also increases. Price elasticity of demand increases as demand increases.1. Define a demand function, and a demand curve. Do the same for a supply function and curve. Demand function: A Function that describes how much a good will be purchased at alternative prices of that good and related goods, alternative income levels, and alternative values of other variables affecting demand.Demand Curve: Curve indicating the total quantity of a good all consumers are willing and able to purchase at each possible price, holding the prices of related goods, income, advertising and other variable constant.
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