How do I work out the different elasticites of demand?

Elasticity is the proportionate responsiveness of a second variable to an initial change in the first variable. 

There are four different types of elasticites:

1. PED = Price Elasticity of Demand

2. YED = Income Elasticity of Demand

3. XED = Cross Elasticity of Demand

4. PES = Price Elasticity of Supply

Definitions and Calculations:

1. PED measures the extent to which the demand for a good changes in response to a change in the price of that good. 

PED = % change in Qd / % change in P

2. YED measures the extent to which the demand for a good changes in response to a change in income. 

YED = % change in Qd / % change in income

3. XED measures the extent to which the demand for good A changes in response to a change in the price of good B,

XED = % change in Qd of A / % change in P of B

4. PES measures the extent to which the supply of a good changes in response to a change in the price of that good.

PES = % change in Qs / % change in P

JE
Answered by Jessica E. Economics tutor

3618 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

The UK suffers from a persistent balance of trade deficit. what can the government do to rectify this and balance the trade figures?


Discuss the impact that Brexit may upon the UK economy (25 marks)


What measures could the government take to boost aggregate demand?


Should the government intervene in cases of market failure


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2026 by IXL Learning