Elasticity Practice- Supply and Demand

Jacob Clifford introduces elasticity concepts, focusing on demand, supply, cross-price, and income elasticity. He provides practice questions to help students understand these concepts, emphasizing the total revenue test and elasticity coefficients. The video covers how to calculate elasticity and interpret results, including identifying substitutes and complements, and distinguishing between normal and inferior goods.

What does a negative cross price elasticity indicate about two goods?

How does income elasticity differ from price elasticity?

Explain the concept of inferior goods in relation to income elasticity.

What is the significance of a positive income elasticity coefficient?