Explain typesof Elasticity of Demand ?

Elasticity of demand refers to the degree of responsiveness of quantity demanded of a good to a change in its price or income of the consumer or price of related goods. There are four main types of elasticity of demand:

1. Price Elasticity of Demand (PED): This measures the responsiveness of quantity demanded to a change in the price of the good itself. It is calculated as the percentage change in quantity demanded divided by the percentage change in price. If PED > 1, demand is elastic (i.e., quantity demanded changes more than price). If PED < 1, demand is inelastic (i.e., quantity demanded changes less than price). If PED = 1, demand is unit elastic (i.e., quantity demanded changes exactly as price).

2. Income Elasticity of Demand (YED): This measures the responsiveness of quantity demanded to a change in income. It is calculated as the percentage change in quantity demanded divided by the percentage change in income. If YED > 0, the good is a normal good (i.e., demand increases as income increases). If YED < 0, the good is an inferior good (i.e., demand decreases as income increases).

3. Cross Elasticity of Demand (XED): This measures the responsiveness of quantity demanded of one good to a change in the price of another good. It is calculated as the percentage change in quantity demanded of the first good divided by the percentage change in price of the second good. If XED > 0, the goods are substitutes (i.e., as the price of one increases, demand for the other increases). If XED < 0, the goods are complements (i.e., as the price of one increases, demand for the other decreases).

4. Price Elasticity of Supply (PES): This measures the responsiveness of quantity supplied to a change in price. It is calculated as the percentage change in quantity supplied divided by the percentage change in price. If PES > 1, supply is elastic (i.e., quantity supplied changes more than price). If PES < 1, supply is inelastic (i.e., quantity supplied changes less than price). If PES = 1, supply is unit elastic (i.e., quantity supplied changes exactly as price).