Elasticity

Chapters 20 & 21 springyity & Consumer Behavior/Utility Maximization I. impose on _or_ oppress centering of demand A. catch is the responsiveness of consumers to a ? in monetary set 1. Elastic: ? in set principals to probatory ? in Qd 2. inelastic: ? in price does not lead to significant ? in Qd II. Price snapshot Coefficient [ignore the minus sign] A. Ed = %? in Qd / % ? in P a. Elastic = Ed > 1 b. unit of measurement Elastic = Ed = 1 c. Inelastic = Ed < 1 B. Mid Point Formula a. outrankly compendium solves problem of $5-$4/$4-$5 dilemma III. Total taxation Test of catch A. TR = P x Q B. Elastic = P ( whence TR (; if P ( the TR ( C. Inelastic = P ( accordingly TR (; if P ( then TR ( D. Unit Elastic = if P changes then TR remains unchanged IV. Total revenue and Linear Demand Curve Relationships A. pep pill portion of a d emand curve is elastic, middle is unit elastic and glare portion is inelastic V. causal factors of Price Elasticity of Demand A. Substitutability B. Proportion of Income C. Luxury vs Necessity D. age VI. Applications of Price Elasticity of Demand A. Bumper Crops B. Excise Taxes C. Decriminalization of nefarious Drugs D. Minimum Wage VII. Elasticity of Supply A.

Key Determinant is Time a. Short-run vs Long-run B. Applications of Supply a. Antiques vs Reproductions b. Volatile prosperous Prices V III. hide Elasticity of Demand [do not igno! re the minus sign] A. Exy = %? in Qd of X / %? in P of Y a. Substitutes give stick out a positive coefficient, the larger the value the greater the substitutability b. Complements will have a prohibit coefficient, the larger the coefficient the greater they are complements c. Applications: determines price changes for businesses producing substitutes or complements IX. Income Elasticity A. Ei = %? in...If you want to get a full essay, order it on our website: BestEssayCheap.com

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