How do I work out the different elasticites of demand?

Elasticity is the proportionate responsiveness of a second variable to an initial change in the first variable. 

There are four different types of elasticites:

1. PED = Price Elasticity of Demand

2. YED = Income Elasticity of Demand

3. XED = Cross Elasticity of Demand

4. PES = Price Elasticity of Supply

Definitions and Calculations:

1. PED measures the extent to which the demand for a good changes in response to a change in the price of that good. 

PED = % change in Qd / % change in P

2. YED measures the extent to which the demand for a good changes in response to a change in income. 

YED = % change in Qd / % change in income

3. XED measures the extent to which the demand for good A changes in response to a change in the price of good B,

XED = % change in Qd of A / % change in P of B

4. PES measures the extent to which the supply of a good changes in response to a change in the price of that good.

PES = % change in Qs / % change in P

JE
Answered by Jessica E. Economics tutor

3412 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Macroeconomic policy can both be a problem and a solution in economic fluctuations. Explain.


Explain why and when government spending leads to inflation


Explain the impact of incentives on the behaviour of economic agents and resource allocation.


Can you explain the difference between joint demand and competitive demand?


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2025 by IXL Learning