Income and Cross Elasticity of Demand and Supply
H2 Economics Only
Income elasticity measures the responsiveness of demand or supply to a change in income. Cross elasticity of demand and supply measures the responsiveness of demand or supply of a good to changes in the price of another good. Students will have to distinguish between these concepts and learn how to determine and distinguish between the extent of the price changes in relation to income and other related goods.
Economics Tuition: Discuss how Price Elasticity of Demand (PED) and Price Elasticity of Supply (PES) can be used by the Sakae Sushi manager to maximise profit
Introduction Definition of PED and PED and state the market information of the PED and PES will help producers in deriving the effective price and production strategy to raise and minimise cost of production so as to raise the profit. Main Body 1. Explain how the...read more