ELASTICITY OF DEMAND
by Aina Asyiera
1. DEFINITION
1.1. Elasticity of demand measures the response between the percentage changes in quantity demanded for a good with respect to the percentage changes in any of its determinants, such as price, income and so forth. There are several kinds of elasticity of demands.
1.2. OWN PRICE
1.2.1. The own price elasticity demand is the percentage change in the quantity demanded if a goods or services divided by the percentage charge in the price.
1.3. CROSS-PRICE
1.3.1. The cross elasticity of demand is an responsiveness in the quantity demanded of one goods when the price for other good changes.
1.4. INCOME PRICE
1.4.1. Income elasticity of demand refer to the sensitivity of the quantity demanded a certain good to a change in real income of consumers who buy this good, keeping all other things constant.
2. MEASUREMENT OF FACTORS DETERMINING MAGNITUDE OF DEMAND ELASTICITY
2.1. BETWEEN MODES
2.2. WITHIN OPERATOR
2.3. WITHIN MODES
3. THE ELASTICITY OF TRANSPORT SUPPLY
3.1. TRANSPORT SUPPLY CAN BE DEFINED AS THE SCHEDULE OF QUANTITIES OF A GOOD OR SERVICES THAT OPERATORS ARE WILLING AND POSSESS CAPACITY TO SELL AT DIFERENT PRICES TO THE MARKET
4. ELASTICITY
4.1. DEMAND
4.1.1. PRICE ELASTICITY
4.1.2. INCOME ELASTICITY
4.1.3. CROSS-ELASTICITY
4.2. SUPPLY
4.2.1. PRICE ELASTICITY