Use the following definitions for an individual who consumes only two goods,x and y:
s x = share of income spent on x.
s y = 1-s x . = price elasticity of demand for x. = price elasticity of demand for y.
e x,I = income elasticity of demand for x.

e y,I = income elasticity of demand for y. = cross price elasticity of demand for x. = cross price elasticity of demand for y.
-The elasticity of the compensated demand curve
Can be computed as:

Question

Use the following definitions for an individual who consumes only two goods,x and y:
s x = share of income spent on x.
s y = 1-s x .​  = price elasticity of demand for x.​  = price elasticity of demand for y.
​e x,I = income elasticity of demand for x.
​
e y,I = income elasticity of demand for y.​  = cross price elasticity of demand for x.​  = cross price elasticity of demand for y.
-The elasticity of the compensated demand curve 
Can be computed as:

Quizplus · Accepted Answer

The Answer of Use the following definitions for an individual who consumes only two goods,x and y:
s x = share of income spent on x.
s y = 1-s x .​  = price elasticity of demand for x.​  = price elasticity of demand for y.
​e x,I = income elasticity of demand for x.
​
e y,I = income elasticity of demand for y.​  = cross price elasticity of demand for x.​  = cross price elasticity of demand for y.
-The elasticity of the compensated demand curve 
Can be computed as:

Use the Following Definitions for an Individual Who Consumes Only