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# Types of Elasticity Demand

Elasticity of demand may be defined as the ratio of the percentage change in demand to the percentage change in price.

ELASTICITY OF DEMAND

Elasticity of demand may be defined as the ratio of the percentage change in demand to the percentage change in price.

Ep= Percentage change in amount demanded / Percentage change in price

TYPES OF ELASTICITY DEMAND

i. Price elasticity of de mand: Elasticity of demand ma y be defined as the ratio of the percentage change in price.

Ep = percentage change in quantity demanded / percentage change in price

ii. Income elasticity of de mand: The income elasticity of demand (Ey) e xpress the responsiveness of a consumer demand or expenditure or consumption) for any good to the change in his income .it ma y be defined as the ratio of percentage change in the quantity demanded of a commodity to the percentage in income. Thus

Ey = percentage change in quantity demanded / percentage change in income

iii. Cross  elasticity  of  demand:  The  cross  elasticity  of  demand  is  the  relation  between

percentage change in the quantity demand ed of a good to the percentage change in the price of a related good. The cross elasticity good A and good B is

Eba= percentage change in the quantity demanded of B/ percentage change in price of A

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