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

Answered by Jessica E. Economics tutor

2834 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Brainstorm whether the NHS is an example of Government failure


Perfect competition theory is based on very unrealistic assumptions. Evaluate whether such a theory is useful in explaining the behaviour of real world firms.


Explain the likely effects on the circular flow of income of the change in unemployment between 2013 and 2015.


How much do I need to write for the long answer questions/essays at the end of the paper?


We're here to help

contact us iconContact usWhatsapp logoMessage us on Whatsapptelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo
Cookie Preferences