The price elasticity of demand in the words of Marshall can be defined as, the elasticity of demand in a market is great or small according as the amount demanded increases much or little for a given fall in price and diminishes much or little for a given rise in price. In this article we will discuss about:- 1. Definitions [...]
Notes on the Theory of Demand:- 1. Meaning and Definitions of Demand 2. Notes on Demand Function 3. Factors Determining Individual Demand 4. Factors Determining Market Demand 5. Demand Schedule 6. Demand Curves 7. Law of Demand 8. Movement along a Demand Curve and Shifts in the Demand Curve 9. Kinds of Demand 10. Inter-Related Demands. It must be remembered [...]
In this article we will learn about the Formulas used for estimating the Cross Elasticity of Demand, Income Elasticity of Demand and Price Elasticity of Demand. Formula Used for Estimating Cross Elasticity of Demand The measure of cross elasticity of demand provides a numeric value. It is estimated as a ratio of proportionate (or percentage) change in quantity demanded of [...]