find Price elasticity cross price elasticity & income elasticity from demand function

Price elasticity refers to the measure of how much the demand for a product or service changes in response to a change in its price. Cross price elasticity refers to the measure of how much the demand for a product or service changes in response to a change in the price of a related product or service. Income elasticity refers to the measure of how much the demand for a product or service changes in response to a change in consumer income.

In general, products or services with a high price elasticity of demand are those for which demand is highly sensitive to changes in price. This means that a small change in price can lead to a large change in demand. For example, if the price of a product increases, people may be more likely to switch to a substitute product, leading to a decrease in demand. On the other hand, products or services with a low price elasticity of demand are those for which demand is relatively insensitive to changes in price.

Cross price elasticity refers to the effect that a change in the price of one product or service has on the demand for another product or service. For example, if the price of a substitute product increases, the demand for the original product may increase, leading to a positive cross price elasticity. On the other hand, if the price of a complementary product increases, the demand for the original product may decrease, leading to a negative cross price elasticity.

Income elasticity refers to the effect that a change in consumer income has on the demand for a product or service. For example, if consumer income increases, the demand for luxury goods may increase, leading to a positive income elasticity. On the other hand, if consumer income decreases, the demand for necessities may increase, leading to a negative income elasticity.