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Elasticity - Coggle Diagram

- - - - the more close substitutes, the more elastic the demand because consumers find it easy to switch.
    - - demand is more price elastic the longer that consumers have to respond to a price change (more time to search for cheaper substitutes)
    - - Products that take up a high % of an income will have a more elastic demand
    - - necessities have a more inelastic demand whereas luxuries have elastic demand
- - - - Joint demand
      - decrease in price for good x = increase in demand for good y
      - If it's >1 they're closely complimentary
    - - competative demand
      - eg. Pepsi and Coke
      - always a positive figure
      - increase in price for good x = increase in demand for y (rival good)
      - if it's >1 they're close substitutes
    - - XED = 0