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Q2-Q1 _
PRICE ELASTICITY
Q1+Q2
% Q 2 % change in
ep =
% P = =
quantity
P2-P1 _ % change in price
P1+P2
2
INCOME ELASTICITY OF DEMAND
Q2-Q1
Q1+Q2 Qd = quantity
2 demand
Y2 + Y1 Y = income
Y1+Y2
2