- Use appropriate diagrams and relevant exampies to illustrate and expiain your understanding of Elasticity. In your
essay, you are expected to address the following issues:
a) Definition of price elasticity of demand and explanation of the expected sign.
b) Measurement of elasticity.
c) The range and the diagrams related to the values of elasticity.
d) Definition of income elasticity of demand and explanation of the expected sign.
e) Explanation and discussion regarding normal and inferior goods.
Sample Solution