Elastic Demand: Elastic demand refers to a situation where the quantity demanded of a good or service is highly responsive to changes in price. This means that even small changes in price can lead to significant shifts in consumer behavior, resulting in large changes in quantity demanded.
Cross Elasticity of Demand (XED): Cross elasticity of demand measures how sensitive the quantity demanded of one good is to changes in the price of another related good. It helps determine whether goods are substitutes or complements.
Income Elasticity of Demand (YED): Income elasticity of demand measures how sensitive the quantity demanded of a good is to changes in income levels. It helps identify whether goods are normal goods (demand increases with income) or inferior goods (demand decreases with income).