Types of Elasticity:
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1.Price elasticity:
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The degree of responsiveness of quantity demanded to a change in price is called price elasticity of demand. It is the ratio of proportionate change in the amount demanded to a proportionate change in price.

2.Income Elasticity:
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Income elasticity is a measure of responsiveness of demand to change in income, when price remains the same. It is the ratio of proportionate change in the amount spent on commodity to a proportionate change in income.


3.Cross Elasticity:
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Here, a change in price of one good causes a change in the demand for other goods. This type of elasticity arises in the case of inter-related goods such as substitutes and complementary goods.

There are five measures of elasticity:
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1.EP = 0 : Perfectly inelastic demand (e.g. products which are essential for existence)
2.Ep = α : Perfectly elastic demand (it is only a theoretical concept)
3.Ep > 1 : Elastic or very elastic demand (generally all luxury products)
4.Ep < 1 : Inelastic or less elastic demand (generally all food or agricultural products)
5.Ep = 1 : Unitary elastic demand (generally all products used for comforts)