List the Various Sources of Expectations and When You Would

question 73

Essay

List the various sources of expectations and when you would typically use each one.

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Definitions:

Income Elasticity

A measure of how much the quantity demanded of a good responds to a change in consumers' income.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good.

Substitution Price Elasticity

A measure of how much the quantity demanded of one good responds to a change in the price of another good, indicating the degree to which these goods are substitutes.

Utility Function

A numerical model that explains how a consumer gains pleasure or usefulness from using goods and services.