Elasticity intro

Elasticity intro - Types of elasticity Types of elasticity...

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Elasticity Elasticity What  determines  elasticity?
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Substitution Substitution How easy it is to substitute a good for the item whose price is changing?
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Budget share Budget share How much of your budget does the item take up?
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Time Time Are you looking at the long run or short run?
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Unformatted text preview: Types of elasticity Types of elasticity Own price Determines whether good is elastic or inelastic Cross price Determines whether goods are substitutes or complements Income Determines whether the good is a normal or inferior good...
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Elasticity intro - Types of elasticity Types of elasticity...

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