Elasticity 1. A definition & determinants of elasticity • Price elasticity 2. Elasticity & consumer expenditure 3. Measurement of elasticity • Arc method •…

Slide 1Second Edition Chapter 5 Elasticity and Its Applications Slide 2 Elasticity of Demand Elasticity of demand - a measure of how responsive the quantity demanded is to…

Slide 1McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 03 The Concept of Elasticity and Consumer and Producer Surplus…

Slide 1 Slide 2 Jeopardy Simultaneous CeilingsFloorsElasticity Miscellaneous Q $100 Q $200 Q $300 Q $400 Q $500 Q $100 Q $200 Q $300 Q $400 Q $500 Final Jeopardy Slide 3…

Slide 14.1 The Price System The market system, also called the price system, performs two important and closely related functions: Price Rationing Resource Allocation Price…

Slide 1Chapter 4 Elasticity Odd-number Questions Slide 2 Problem #1, Chapter 4 On the accompanying demand curve, calculate the price elasticity of demand at points A, B,…

Slide 1Elasticity! Boingy, boingy, boingy! Price, Income and Cross Elasticity Slide 2 Elasticity – the concept The responsiveness of one variable to changes in another…

Slide 1Chapter 4 Elasticity Additional Questions 1-9 End-of Chapter Ex. 4, 8 Slide 2 Elasticity It represents the ratio of the % change in one variable to the % change in…

Slide 1Copyright © 2012 Pearson Addison-Wesley. All rights reserved. Chapter 19 Demand and Supply Elasticity Slide 2 Copyright © 2012 Pearson Addison-Wesley. All rights…

Slide 1Price of the good Elasticity of Demand Income Price of other goods Price elasticity of demand Income elasticity of demand Cross elasticity of demand Slide 2 Elasticity…