In this video, Dr. Natalia Barbour further explains the concept of elasticities, their types and how to calculate them and understand the meaning of their values.
- Price elasticity of demand is expressed by e = (Dq/q)/(Dp/p)
- Price elasticity of demand is calculated by dividing the percentage change in demand by the percentage change in price.
- Cross-price elasticity implies a percentage change in the demand for a change in price of another good.
- Cross-price elasticity is often positive.
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