77 457
Assignments Done
Successfully Done
In July 2019

Answer to Question #43629 in Economics of Enterprise for Abdelaali

Question #43629
why do we need to study crass elasticity of demand and income elasticity of demand
Expert's answer
We need to study elasticity because it gives understanding on how demand will change if price or income change. Income elasticity of demand shows how demand increase with increase of income. At the same time price elasticity of demand shows how demand changes after price changes.

As long as we have market where all factors are correlated, we need to evaluate cross elasticity. Usually it happens at the same time when prices change and income change. So we need to evaluate effect of these two factors simultaneously.

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!


No comments. Be first!

Leave a comment

Ask Your question

Privacy policy Terms and Conditions