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
