Micro 2.4/2.5 Other Elasticities

[@acatalepsia]

2:47 LMAO the perfectly straight inelastic curve made me laugh for some reason

[@ReviewEcon]

Interestingly (not on the AP exam) a straight supply curves has a constant elasticity and you can determine what it is just by seeing where it intersects the axis. If it starts at the origin, it's unit elastic. If it starts on the Y axis it's elastic. If it starts at the x axis it's inelastic. 😄 You can learn more about it here: www.amosweb.com/cgi-bin/awb_nav.pl?s=wpd&c=dsp&k=elasticity+and+supply+intercept#:~:text=The%20elasticity%20of%20a%20supply,illustrate%20the%20five%20elasticity%20alternatives.

[@ryanbarber4123]

On the last example of cross price elasticity why is the price decrease positive and not negitive like in all of the other examples? can you please explain? why would it not be (32%/-8%)=-4

[@ReviewEcon]

Good catch! You're correct. I'll fix that very soon. Thank you!

[@huaIian]

i read in khan academy than an income elasticity more than 1 means its a normal luxury, and income elasticity between 0 and 1 is a normal necessity, and an income elasticity that is negative is an inferior good. is this correct, and is this how i should view it for my ap exam?

[@ReviewEcon]

That is correct. You don't need to know about luxury vs necessity. But you do need to know normal vs inferior.