Price Elasticity of Demand (Ep)
Ep gives % change quantity per 1% change
in price .
CASE STUDY :
Price Elasticity of Demand In The Real World
COMMODITY ELASTICITY
Urban India Short run Long run
Butter 1.478...
Income Elasticity of Demand (Ei)
Ei gives % change quantity per 1% change
in income .
CASE STUDY :
Income Elasticity of Demand In The Real World
COMMODITY INCOME ELASTICITY
Milk(India) 1.0701
Mutton and goat ...
Cross-Price Elasticity of Demand (Exy)
Exy gives % change quantity of commodity Y per
1% change in price of commodity X .
CASE STUDY :
Cross-Price Elasticity of Demand In The Real World
Commodity X Commodity Y Elasticity
Tea (India) Coffee (Ind...
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Price elasticity of demand in the real world case study presentation

Macro Economics, Case Study, Price elasticity of demand in the real world
Published on: Mar 4, 2016
Published in: Education      Economy & Finance      Business      
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Transcripts - Price elasticity of demand in the real world case study presentation

  • 1. Price Elasticity of Demand (Ep) Ep gives % change quantity per 1% change in price .
  • 2. CASE STUDY : Price Elasticity of Demand In The Real World COMMODITY ELASTICITY Urban India Short run Long run Butter 1.478 2.78 Petrol 0.3 0.9 Tea 0.712 1.14 Clothing 1.1 2.88 United States Clothing 0.9 2.90 Beer 1.72 2.17 Electricity 0.13 1.89 Gasoline 0.25 0.92
  • 3. Income Elasticity of Demand (Ei) Ei gives % change quantity per 1% change in income .
  • 4. CASE STUDY : Income Elasticity of Demand In The Real World COMMODITY INCOME ELASTICITY Milk(India) 1.0701 Mutton and goat meat(India) 3.1978 Beef(India) 0.5702 Cheese(UK) 0.37 Potatoes (UK) -0.32 Wine (CANADA) 2.59 Flour(US) -0.36 Gasoline (US) 1.20 Cigarettes(US) 0.50
  • 5. Cross-Price Elasticity of Demand (Exy) Exy gives % change quantity of commodity Y per 1% change in price of commodity X .
  • 6. CASE STUDY : Cross-Price Elasticity of Demand In The Real World Commodity X Commodity Y Elasticity Tea (India) Coffee (India) 0.3457 Margarine (US) Butter (US) 1.53 Pork (US) Beef (US) 0.40 Pork (UK) Beef (UK) 0.00 Mutton (UK) Beef (UK) 0.28 Entertainment(US) Food (US) -0.72 Automobile(AUS) Bus transportation(AUS) 0.07