What are the various kinds of demand elasticity?

I have a question about Price elasticity of demand?!?

• Hello, I'm struggling with this. Please help! Keesha's monthly demand for hot dogs depends on the price of hot dogs (Ph) and her income (I), both measured in dollars, as follows: Qh= (I)/(10*Ph) Keesha's income is $2,000 a month and the price of hot dogs is $5. I need to find the (Price) elasticity of demand and tell whether her demand is elastic, inelastic, or unit elastic. I also need to find her (Price) elasticity of demand using the arc elasticity when Price changes from $5 to $6. Then finally, I need to solve her income elasticity of demand for hot dogs and decide if the hot dogs are a normal or inferior goods. I know this is a lot! I'd appreciate any help at all! Thanks!

• Answer:

  Price elasticity has to do with amount of demand. Everybody will buy butter at $2.00 per pound. But raise the price of butter to $5.00 and there will be a surplus of butter because most people can't or won't afford the higher price.