MYTUTOR SUBJECT ANSWERS

537 views

How should I write the definitions of the different elasticities in an exam?

The first thing you should do is determine which elasticity you are being asked.

There are four different types of elasticities:

1. PED = Price Elasticity of Demand

2. YED = Income Elasticity of Demand

3. XED = Cross Elasticity of Demand

4. PES = Price Elasticity of Supply

Once you are clear which elasticity you are being asked about, write the full definition and the calculation as demonstrated below. If the question includes values, plug in the values and show your working out. 

Definitions and Calculations:

1. PED = Price Elasticity of Demand

PED measures the responsiveness or sensitivity of demand for a good due to a change in price.

PED = % change in Quantity Demand / % change in Price

2. YED = Income Elasticity of Demand

YED measures the responsiveness of demand for a good due to a change in income. 

YED = % change in Quantity Demand / % change in income

3. XED = Cross Elasticity of Demand

 XED measures the responsiveness in demand for good B due to a change in price of good A 

XED = % change in Quantity Demand of B / % change in Price of A

4. PES = Price Elasticity of Supply

 PES measures the responsiveness of supply due to a change in  price 

PES = % change in Quantity Supply / % change in Price

Naana O. GCSE Government and Politics tutor, GCSE Business Studies tu...

1 year ago

Answered by Naana, a GCSE Economics tutor with MyTutor


Still stuck? Get one-to-one help from a personally interviewed subject specialist

65 SUBJECT SPECIALISTS

£18 /hr

Daphne B.

Degree: History (Bachelors) - Exeter University

Subjects offered:Economics, History+ 3 more

Economics
History
Extended Project Qualification
English Literature
.HAT.

“I am a second year History student at the University of Exeter. I am incredibly passionate about the subject, and can offer really useful sessions. ”

£18 /hr

Isobel B.

Degree: Theoretical Physics (Masters) - University College London University

Subjects offered:Economics, Science+ 5 more

Economics
Science
Physics
Maths
Further Mathematics
Art
-Personal Statements-

“I am 20 years old and currently studying Theoretical Physics at UCL. I have a lot of experience tutoring and have a passion to help others learn.”

£18 /hr

Edward L.

Degree: Philosophy, Politics and Economics (Bachelors) - Kings, London University

Subjects offered:Economics, Religious Studies

Economics
Religious Studies

“Undergraduate studying PPE at King's College London and economics prize winner helping tutor for economics. ”

About the author

Naana O.

Currently unavailable: for regular students

Degree: law (Bachelors) - Edinburgh University

Subjects offered:Economics, Government and Politics+ 2 more

Economics
Government and Politics
Business Studies
-Personal Statements-

“Hello, my name is Naana and I am studying Law at The University of Edinburgh. Extra tuition while growing up stressed me out until I had a tutor who taught me to enjoy learning. This gave me the support to build and develop a solid fo...”

MyTutor guarantee

You may also like...

Other GCSE Economics questions

Explain what the possible results could be from increasing the Euro/US dollar exchange rate (you are Euro)

Why does a govt focus on economic growth as a primary objective and should it always pursue this objective. Give reasons for your answer.

What's the difference between direct and indirect taxation

What kind of effect would a national minimum wage have, is it positive or negative ?

View GCSE Economics tutors

We use cookies to improve your site experience. By continuing to use this website, we'll assume that you're OK with this. Dismiss

mtw:mercury1:status:ok