Here are five values for different types of elasticity the

Question

Elasticity

Here are five values for different types of elasticity. (The numbers have been calculated for each case/market using the elasticity methods from your textbook). Assume that prices rose by 10% in the calculations for the price elasticity of demand and also in the calculations for the cross price elasticity of demand. Also assume that income rose by 10% for the income elasticity of demand calculations.

1. Price elasticity of Demand is -0.5
2. 2. Cross Price Elasticity of Demand is -0.5
3. Cross price elasticity of Demand is 0,8
4. Income Elasticity of Demand is -2
5. Income Elasticity of Demand is 1

In a multi-paragraph essay, explain what each type of elasticity is trying to measure and what these numbers predict in each case.

Develop a response that includes examples and evidence to support your ideas, and which clearly communicates the required message to your audience. Organize your response in a clear and logical manner as appropriate for the genre of writing. Use well-structured sentences, audience-appropriate language. Are correct conventions of standard American English.