Social Sciences and History / Unit 13 SSH 1224 short lesson, about 20 seconds
Income, Cross-Price, Wage, Savings Elasticities
Captions available
The idea
Elasticity is any percentage change over another. Income elasticity of demand: percentage change in quantity demanded over percentage change in income. Cross-price elasticity: one good's quantity change over another good's price change. Wage elasticity of labor supply and the elasticity of savings follow the same form.
In practice
Positive cross-price: substitutes; negative: complements.
Where people slip
It applies in labor and financial markets too.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
Builds on
Unlocks
- Nothing yet depends on this.
Something wrong in this lesson? Flag it