Price of one good impacting quantity demanded of another. Created by Sal Khan.
Elasticities can be calculated for more than just price elasticity of supply or price elasticity of demand. For example, income elasticity of demand as a measure of how quantity demanded changes in response to income.
Principles of Macroeconomics 2e covers the scope and sequence of most introductory economics courses. The text includes many current examples, which are handled in a politically equitable way. The outcome is a balanced approach to the theory and application of economics concepts. The second edition has been thoroughly revised to increase clarity, update data and current event impacts, and incorporate the feedback from many reviewers and adopters.Changes made in Principles of Macroeconomics 2e are described in the preface and the transition guide to help instructors transition to the second edition.
By the end of this section, you will be able to:
Calculate the income elasticity of demand and the cross-price elasticity of demand
Calculate the elasticity in labor and financial capital markets through an understanding of the elasticity of labor supply and the elasticity of savings
Apply concepts of price elasticity to real-world situations
