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Income elasticity coefficient - PowerPoint PPT Presentation

Module 9

Module 9. Income Elasticity of Demand and Cross Price Elasticity of Demand. Objectives. Define the income elasticity of demand and how to calculate it. Define the cross-price elasticity of and how to calculate it. Objective 1. Define the income elasticity of demand

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Elasticity

Elasticity. Elasticity shows how sensitive Quantity is to Change in Price. THE LAW OF DEMAND SAYS. Consumers will buy more when prices go down and less when prices go up. HOW MUCH MORE OR LESS?. DOES IT MATTER?. 4 Types of Elasticity. Elasticity of Demand Elasticity of Supply

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Income elasticity coefficient - PowerPoint PPT Presentation

Module 9

Elasticity