definition, values, meaning of such values and type of goods with such elasticity value …….. | Quick Solution

Clearly stating the definition, the values, the meaning of such values and the type of goods
having such elasticity values, distinguish among
i. the price elasticity of demand, (6 marks)
ii. the income elasticity of demand and, (2 marks)
iii. the cross elasticity of demand. (2 marks)
(b) Recently, prices for both bread and cars have increased. The same happened for our income.
Using the concepts in Part (a), explain the likely effects on the consumption of bread and cars
with higher prices and income. (10 marks