How many total demand elasticities can be calculated for two goods that are substitutes and normal goods?

To understand the total demand elasticities for two goods that are substitutes and normal goods, it's important to consider the different types of elasticities that can be computed.

Elasticity measures how responsive the quantity demanded of one good is to changes in price or income. For two goods, we can derive several elasticities:

1. Own Price Elasticity of Demand: For each good, we can calculate the own price elasticity, which measures how the quantity demanded of that specific good changes in response to a change in its own price. This contributes two own price elasticities.

2. Cross Price Elasticity of Demand: Since the goods are substitutes, we can also compute the cross price elasticity for each good. The cross price elasticity measures how the quantity demanded of one good changes in response to a change in the price of the other good. This contributes another two cross price elasticities.

3. Income Elasticity of Demand: As normal goods, each good will have its own income elasticity, which measures how the quantity demanded changes in response to changes in consumer income. This adds two income elasticities.

Summing these up:

• 2 Own Price Elasticities (one for each good)
• 2 Cross Price Elasticities (one