Eco Proj Ppt
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Transcript of Eco Proj Ppt
The Role Play
Contributors:
Khushboo ParekhShalaka KulkarniAprajita MittraAakriti PandeyAkanksha KaushikDrishty Singh
Lets learn the concept of Income Elasticity of Demand through a role play.
Introduction Elasticity of demand is defined as the percentage change
in quantity demanded caused by 1% change in the determinant under consideration while other determinants are held constant.
Elasticity of Demand (Ed) is a measure to show responsiveness in economics, of a quantity demanded and its change in price, ceteris paribus.
The formula for calculation of Elasticity of Demand
Ed = Percentage change in Quantity
Percentage change in Price
Types of Elasticity of Demand
Price Elasticity of demand
Income Elasticity of demand
Cross price elasticity of demand
Arc elasticity of demand
Advertising and Promotional elasticity
Income Elasticity of Demand Income Elasticity of Demand is the degree of
responsiveness of quantity demanded of any commodity X to the change in consumer’s income.
The formula for Elasticity of Demand is expressed as
Ey = Percentage change in quantity demand of X
Percentage change in Income The types of income elasticity are:
1. Positive Income Elasticity
2. Negative Income Elasticity
3. Zero Income Elasticity
Conclusion
The types of Income Elasticity of demand were discussed with daily life examples
We studied the consequences of rise and fall in income with respect to their changed demands
Also gave an insight upon how lives of people are affected with the change in income
The higher the percentage change, more is the effect, and vice versa