## How to calculate expenditure elasticity

The expenditure elasticity is a measurement of how expenditure on a good changes in response to a price change. The…

## Cross price elasticity of demand

Cross-price elasticity formulaComplementary goodSubstitute good Cross-price elasticity formula The cross-price elasticity of demand measures the responsiveness of a good to…

## Types of price elasticity of demand

The elasticity of demand (\$\$E_D\$\$) measures the responsiveness of demand to a change in price. It is defined as the…

## Consumer surplus with perfectly elastic demand

This is going to be a quick post. This will cover consumer surplus when there is perfectly elastic demand. When…

## Why does revenue decrease with elastic demand when price increases

if a good has elastic demand and a firm increases their price, the revenue of that firm will decrease. If…

## Define elasticity | inelastic demand | elastic demand |Unit elasticity | short run v long run elasticty | Mid-point formula

Define Elasticity E = (Change in price ÷ Price) ÷ (Change in quantity ÷ Quantity) Where: change in price equals (Price 1 – Price 0)…