1. Discuss the practical importanc e of the knowledge e of: a. Price Elasticity of demand b. Income Elasticity of demand c. Cross elasticity of demand d. Price Elasticity of supply

The knowledge of price elasticity of demand, income elasticity of demand, cross elasticity of demand, and price elasticity of supply is of practical importance in various aspects of economics and business. Here's a brief discussion of the practical importance of each:a. Price Elasticity of Demand:Price elasticity of demand measures the responsiveness of quantity demanded to a change in price. It helps businesses and policymakers understand how changes in price affect consumer demand. For example, if a product has high price elasticity, a small change in price can lead to a significant change in quantity demanded. This information can be used to set optimal pricing strategies, determine the impact of price changes on revenue, and make informed decisions about production and marketing.b. Income Elasticity of Demand:Income elasticity of demand measures the responsiveness of quantity demanded to a change in income. It helps businesses and policymakers understand how changes in income affect consumer demand for a particular product or service. For example, if a product has high income elasticity, an increase in income can lead to a significant increase in quantity demanded. This information can be used to identify products that are likely to be popular among consumers with increasing incomes, and to tailor marketing strategies accordingly.c. Cross Elasticity of Demand:Cross elasticity of demand measures the responsiveness of quantity demanded of one product to a change in the price of another product. It helps businesses and policymakers understand the relationship between different products and how changes in the price of one product can affect the demand for another product. For example, if two products are substitutes, an increase in the price of one product can lead to an increase in the demand for the other product. This information can be used to identify potential substitutes and make informed decisions about product development and pricing strategies.d. Price Elasticity of Supply:Price elasticity of supply measures the responsiveness of quantity supplied to a change in price. It helps businesses and policymakers understand how changes in price affect the supply of a particular product or service. For example, if a product has high price elasticity of supply, an increase in price can lead to a significant increase in quantity supplied. This information can be used to determine the optimal level of production, manage inventory, and make informed decisions about resource allocation.In summary, the knowledge of price elasticity of demand, income elasticity of demand, cross elasticity of demand, and price elasticity of supply is of practical importance in understanding consumer behavior, making informed business decisions, and developing effective marketing strategies.