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Define the price elasticity of demand and the income elasticity of demand
Chapter 5, Problem Questions for Review 5.1(choose chapter or problem)
QUESTION:
Define the price elasticity of demand and the income elasticity of demand.
Questions & Answers
QUESTION:
Define the price elasticity of demand and the income elasticity of demand.
ANSWER:Step 1 of 3
The elasticity of demand can be measured either from the change in degree or the change in source. When the elasticity of demand is measured from the change in degree, then it is called the price elasticity of demand. The elasticity of demand is measured from the change in the source; then, it is either the cross-price elasticity of demand or the income elasticity of demand.