Slide 1Session 4 Supply and Demand Disclaimer: The views expressed are those of the presenters and do not necessarily reflect those of the Federal Reserve Bank of Dallas…

Slide 1Balance-of- Payments and Exchange-Rate Determination Elasticities Approach and Absorption Approach INTERNATIONAL MONETARY AND FINANCIAL ECONOMICS Third Edition Joseph…

PRICE ELASTICITY OF DEMAND MR. REY BELEN Demand Price and Quantity Demanded are inversely related to each other. An increase in price causes the quantity demanded to fall,…

1. Chapter 5 Elasticity of Demand and Supply These slides supplement the textbook, but should not replace reading the textbook 2. What is total revenue? Price multiplied…

1. Elasticity 4 2. Previously • Demand and supply balance the desires of consumers and producers. • Demand and supply steer the market price toward equilibrium. • We…

INTRODUCTION Demand is desire backed by willingness to pay and ability to pay i.e. a wish to have a commodity does not become demand. A person wishing to have a commodity…

Chapter 3 Demand Elasticities Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Why Should Managers Study Elasticity? Own-price elasticity helps managers…

Slide 1 DEMAND ELASTICITY Introduction The successful manager is interested in providing “detailed” quantitative answers to questions like : How much do we have to cut…

MICROECONOMICS: Theory & Applications By Edgar K. Browning & Mark A. Zupan John Wiley & Sons, Inc. 11th Edition, Copyright 2012 PowerPoint prepared by Della L.…

Slide 1CHAPTER 4 Elasticity Slide 2 The Responsiveness of the Quantity Demanded to Price  When price rises, quantity demanded decreases.  The question is how much quantity…