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 () 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…