You Are Told That the Price Elasticity of Demand for Widgets

question 19

Essay

You are told that the price elasticity of demand for widgets is -0.75,the income elasticity of widgets is 2,and the cross-price elasticity of widgets and gadgets is 4.Carefully explain what information you can gather from each of these figures.

---

Definitions:

Trigeminal

Pertaining to the trigeminal nerve, which is the fifth cranial nerve responsible for sensation in the face and motor functions such as biting and chewing.

Cranial Nerve

One of twelve pairs of nerves that originate in the brain and primarily serve the head and neck (except the vagus nerve which extends to the abdomen).

Optic Nerve

A cranial nerve that transmits visual information from the retina to the brain.

Choroid

A layer of the eye between the retina and the sclera, rich in blood vessels, supplying nutrients to the eye's inner parts.