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Elasticity of Demand
Presented by : BakkaprabhuUppar
Managerial Economics
GFGC Bidar
What is Elasticity of Demand
• An Elastic Demand is one in which the change in quantity demand due to a
change in price is large
Types of Elasticity of Demand
1. Price Elasticity of Demand : Measures the changes in demand of
a commodity due to change in its own price.
PeD = Percentage change in quantity demands of commodity
/ percentage change in its own price
2. Income elasticity of demand : Income Elasticity of
Demand (is the responsiveness of demand to the change in income.
Cy = % change in quantity demanded / % change in income
3. Cross Elasticity of Demand :
Cy = % change in quantity demanded of commodity / % change in the
price of commodity
4. Advertising Elasticity of Demand :
Measure of an advertising campaigns effectiveness in
generating new sales.
Cy = % change in quantity demanded of commodity / % change in the
price of commodity
End of Seminar

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Elasticity of Demand presentation by Bakkaprabhu Uppar.pptx

  • 1. Elasticity of Demand Presented by : BakkaprabhuUppar Managerial Economics GFGC Bidar
  • 2. What is Elasticity of Demand • An Elastic Demand is one in which the change in quantity demand due to a change in price is large
  • 3. Types of Elasticity of Demand 1. Price Elasticity of Demand : Measures the changes in demand of a commodity due to change in its own price. PeD = Percentage change in quantity demands of commodity / percentage change in its own price
  • 4. 2. Income elasticity of demand : Income Elasticity of Demand (is the responsiveness of demand to the change in income. Cy = % change in quantity demanded / % change in income
  • 5. 3. Cross Elasticity of Demand : Cy = % change in quantity demanded of commodity / % change in the price of commodity
  • 6. 4. Advertising Elasticity of Demand : Measure of an advertising campaigns effectiveness in generating new sales. Cy = % change in quantity demanded of commodity / % change in the price of commodity