MODULE 48

Other Important Elasticities

In this Module, you will learn to:

• Measure the responsiveness of demand for one good to changes in the price of another good using the cross-price elasticity of demand

• Measure the responsiveness of demand to changes in income using the income elasticity of demand

• Explain the significance of the price elasticity of supply, which measures the responsiveness of the quantity supplied to changes in price

• Identify and describe the factors that influence the size of these various elasticities