Cross-Price Elasticity and Income Elasticity of Demand: Are Your Students Confused?

The American Economist, Vol. 54, No. 2, pp. 107-110, Fall, 2009

4 Pages Posted: 7 Mar 2010

See all articles by Philip E. Graves

Philip E. Graves

University of Colorado at Boulder - Department of Economics

Robert L. Sexton

Pepperdine University - Economics Department

Date Written: 2009

Abstract

The authors demonstrate that most textbooks are ambiguous at best in their treatment of cross-price and income elasticity of demand. There is also no discussion of what initiates a price increase in discussions of substitutes and complements in the textbooks examined. The authors offer a remedy for these deficiencies.

Keywords: Cross-Price Elasticity, Income Elasticity of Demand, Economic Education

Suggested Citation

Graves, Philip E. and Sexton, Robert L., Cross-Price Elasticity and Income Elasticity of Demand: Are Your Students Confused? (2009). The American Economist, Vol. 54, No. 2, pp. 107-110, Fall, 2009. Available at SSRN: https://ssrn.com/abstract=1566272

Philip E. Graves (Contact Author)

University of Colorado at Boulder - Department of Economics ( email )

Campus Box 256
Boulder, CO 80309-0256
United States

Robert L. Sexton

Pepperdine University - Economics Department ( email )

24255 Pacific Coast Highway
Malibu, CA 90263
United States

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