It is a common topic in first year microeconomics courses that often confuses students. I hope this walkthrough helps - Price Elasticity - How to Use Cross Price and Own Price Elasticity.
Understanding Cross-Price and Own-Price Elasticity of Demand
From Mike Moffatt, About.com GuideOctober 31, 2009
Top Related Searches own price elasticity price elasticity of demand elasticity of demand own price elasticity of demand october 31
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Comments
The link to the article isn’t working for me.
I suppose that you are using a log-log model to estimate elasticity?
Cheers!
Not a question, but if one object is to avoid confusion, look again at the last sentence under ‘Own Price Elasticity — Answering the Question’
Hi,
I was wondering why the own-price elasticity figure is always a pure number (i.e. with no units).
Also, do the price elasticity and own-price elasticity mean exactly the same thing?
Many thanks for your clarification still on this.