Slide 1Mr. Barnett University High AP Economics 2012-2013 Slide 2 We already know that if the price of a good rises, consumers will buy less But….how much less? Economists…
Slide 11. What is the definition of elasticity? 2. What is the meaning and importance of: price elasticity of demand? income elasticity of demand? price elasticity of supply?…
Slide 1Tutorial 2 Elasticity Slide 2 Elasticity 1 The price of orange falls from 15B to 10B per kilogram and the quantity demanded goes from 100,000 to 200,000 kilograms.…
1.1CHAPTER 2525.1 The analytical solution can be derived by separation of variables dy ∫y ∫= x 2 −1.1 dxx3 ln y =− 1.1x + C3Substituting the initial conditions yields…
1.55Elasticity and Its Applications 2. Elasticity . . . • … allows us to analyze supply and demand with greater precision. • … is a measure of how much buyers and…
1. Elasticity Price elasticity demand supply Cross elasticity Income elasticity 2. Basic idea We know when P Qd Qs holding other factors constant 3. but how much? if price…
Price Elasticity of Demand Overheads How much would your roommate pay to watch a live fight? How does Showtime decide how much to charge for a live fight? What about Hank…
Elasticity and Its Applications THE ELASTICITY OF DEMAND Price elasticity of demand is a measure of how much the quantity demanded of a good responds to a change in the price…