Price, Income, and Cross Elasticities (AQA A-Level Economics): Flashcards

Responsiveness between two variables

$\frac{\% \Delta \text{ in Qd}}{\% \Delta \text{ in price}}$

$\frac{\% \Delta \text{ in Qd}}{\% \Delta \text{ in income}}$

$\frac{\% \Delta \text{ Qd of A}}{\% \Delta \text{ price of B}}$

Horizontal line

Substitutability

Increases total revenue

Positive

Negative

Positive