Economic
Essay

Point Elasticity of Price demand
PointElasticity of Price of demand takes the elasticity of a particularspot on a curve or at times between the points. It is given by:
PED=
%Δ Q / Q
————
%Δ P / P
%Δ Q/Q= 5/50*100
%Δ P/P = 13/70*100
ThereforePED= 10/18.571429
PED=0.53846

Arc Price Elasticity of demand
Thisis a measure of elasticity between any to specific points or spots ona curve.
Midpointof 70 and 63 is 66.5
%Δ in quantity= 13/66.5= 0.19548872
%Δ in price= 5/52.5= 0.0952381
ThereforePED = 0.19548872/.0952381
ArcPrice Elasticity of demand = 2.0526

Arc price elasticity of supply
%Δ in quantity= 30/55=0.5454
%Δ in price =10/45=0.2222
ThereforePES= 0.5454/0.2222
Arcprice elasticity of supply= 2.4545

Income Elasticity of Demand
Itmeasures the degree of change of demand of a good or service as aresult of changes in income.
YED=%change in Q.D           % change in Income
%change in QD= (3/12)* 100 = 25%
%change in Income= (10,000/25,000)*100 =25%
YED=1
Inthis case, there is there is unitary income elasticity of demandgiven that an increase in income is results in the same proportionateincrease in the quantity of goods demanded.

Cross Elasticity
(12+15/25+20)*5/3= (27/45)*5/3= 0.6*1.6667=1
Theyare substitute goods because price elasticity is positive as we get(1) from the calculations.