Elasticity Of Demand, Types of Elasticity of Demand, Price Elasticity of Demand, Income Elasticity of Demand, Cross Elasticity of Demand, Zero Income Elasticity of Demand.

1. INDIAN ECONOMICSINDIAN ECONOMICS
PGDM 2
DINKER VAID

2. Elasticity Of DemandElasticity Of Demand
The elasticity of demand is a degree of change inThe elasticity of demand is a degree of change in
thethe quantity demandedquantity demanded of a product in responseof a product in response
to itsto its determinantsdeterminants, such as -:, such as -:
 price of the product,price of the product,
 price of substitutes, andprice of substitutes, and
income of consumersincome of consumers

3. Types of Elasticity ofTypes of Elasticity of
DemandDemand

4. Price Elasticity ofPrice Elasticity of
DemandDemand

5. Types Of PriceTypes Of Price
ElasticityElasticity

6. Income Elasticity ofIncome Elasticity of
DemandDemand

7. Types ofTypes of IncomeIncome
Elasticity of DemandElasticity of Demand

8. Positive incomePositive income
elasticity of demandelasticity of demand
When a proportionate change in theWhen a proportionate change in the
income of a consumer, increases theincome of a consumer, increases the
demand for a product .demand for a product .
vice versa, income elasticity ofvice versa, income elasticity of
demand is said to be negative.demand is said to be negative.

9. Negative incomeNegative income
elasticity of demandelasticity of demand
 When a proportionate change in theWhen a proportionate change in the
income of a consumer results in a fallincome of a consumer results in a fall
in the demand for a productin the demand for a product
 vice versa, the income elasticity ofvice versa, the income elasticity of
demand is said to be positive.demand is said to be positive.

10. Zero income elasticityZero income elasticity
of demandof demand
When a proportionate change in theWhen a proportionate change in the
income of a consumer does not bringincome of a consumer does not bring
any change in the demand for aany change in the demand for a
product Than, income elasticity ofproduct Than, income elasticity of
demand is said to be zero.demand is said to be zero.

11. Cross elasticity of demandCross elasticity of demand


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