Overview 2 The chapter discusses the interpretation of croSs-price elasticity and Income elasticity in terms of what they tell us about people's preferences for various goods. Finally, the chapter investigates price elasticity of supply and how it can be used to investigate firms production processes Chapter 4: Elasticity Slide 7MB MC Chapter 4: Elasticity Slide 7 Overview 2 ◼ The chapter discusses the interpretation of cross-price elasticity and income elasticity in terms of what they tell us about people’s preferences for various goods. Finally, the chapter investigates price elasticity of supply and how it can be used to investigate firms’ production processes