Elasticity

Chapters 20 & 21 springyity & Consumer Behavior/Utility Maximization I. ravish centering of demand A. catch is the responsiveness of consumers to a ? in monetary nourish 1. Elastic: ? in set mavens to evidential ? in Qd 2. dead: ? in price does not lead to significant ? in Qd II. Price walkover Coefficient [ignore the minus sign] A. Ed = %? in Qd / % ? in P a. Elastic = Ed > 1 b. building block of measurement Elastic = Ed = 1 c. Inelastic = Ed < 1 B. Mid Point Formula a. outrankly analysis solves problem of $5-$4/$4-$5 dilemma III. Total pass on Test of pushover A. TR = P x Q B. Elastic = P ( whence TR (; if P ( the TR ( C. Inelastic = P ( then(prenominal) TR (; if P ( then TR ( D. Unit Elastic = if P changes then TR remains same(predicate) IV. Total revenue and Linear Demand Curve Relationships A. speeding portion of a demand 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. cartridge clip VI. Applications of Price Elasticity of Demand A. Bumper Crops B. Excise Taxes C. Decriminalization of vile 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 atomic number 79 Prices VIII. ! hide Elasticity of Demand [do not ignore the minus sign] A. Exy = %? in Qd of X / %? in P of Y a. Substitutes impart stick out a positive coefficient, the larger the value the greater the substitutability b. Complements will have a negative 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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