More Elasticity
Use slides #13-18 to take notes over the three other types of elasticities that you are expected to know. The video at the end will also help reinforce those concepts.
1. Definition of elasticity of supply, cross price elasticity and income elasticity.
2. Use elasticity of supply formula to calculate if a good as elastic or inelastic supply.
3. Use cross price elasticity to calculate if two goods are substitutes or complements.
4. Use income elasticity formula to calculate if a good is a normal or an inferior good.
5. Explain what unit elastic, perfectly inelastic and perfectly elastic mean.
